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Dubai - Success Stories
Strategic Development Advise, Bawadi Development, Dubailand, UAE
"The work performed by HVS enabled us to gain a sound understanding of supply and demand dynamics for hotel accommodations in Dubai. Findings presented by HVS were an important input to our initial hotel development strategy"
Nicholas Wilson,
Senior Director of Business Development,
Emaar Properties
Project
Developed by Tatweer – a subsidiary of Dubai Holding – and located alongside Emirates Road, Dubailand ranks among the world's most ambitious tourism projects. The US$65 billion development is planned to comprise of 45 mega projects and is expected to offer world class entertainment, hotel, retail as well as culture and sports facilities. Upon its completion in 2015 the project expects to attract 40,000 visitors a day and 15 million per annum.
Set to become the largest hotel cluster in the world, 'Bawadi' will be located at the heart of Dubailand. Bawadi will stretch over an area of approximately ten kilometres and will be home to 51 hotels with an aggregate capacity of 60,000 rooms. The construction of a large variety of resort, boutique, shopping centre, themed and unthemed hotel properties is envisaged.
KEY FEATURES OF THE ENGAGEMENT
- Reviewed market for hotel accommodations in Dubai.
- Commented on supply and demand dynamics for Dubai market.
- Performed case studies/SWOT analyses for comparable destinations.
- Recommended potential product concepts and operators for each hotel.
- Provided indicative segmentation analyses and P+L projections for each of the proposed hotels.
The HVS Assignment
Having performed over 30 assignments in the Dubai market over the past five years, HVS has been approached by Emaar, one of the region's most prestigious property developers. Emaar had entered into a JV with Tatweer to develop a mixed-use project across 70million square feet of land within Bawadi, comprising 5,150 hotel rooms. HVS' role was to provide Emaar with strategic advice on this massive development. The project required 'out-of-the-box' thinking as the work was to include recommendations on the most suitable type and number of hotels, their most viable market positioning as well as the ideal phasing for the proposed supply.
Results
In order to perform this extensive engagement and advise on most viable hotel concepts we have performed initial case studies including high-level SWOT analyses comparing the proposed Bawadi development with Las Vegas, Disneyland Orlando and Disneyland Paris, three destinations which exhibit similarities in terms of the concentration of hotels and entertainment facilities. A detailed analysis of supply and demand within the Dubai market then allowed us to comment on the ideal size and positioning for each proposed hotel. Consequently a list of potential operators was generated for each hotel. Our report concluded with the provision of indicative profit and loss projections for each property to illustrate potential earnings for our client. Emaar Properties were pleased with their working relationship with HVS.
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