Dubai - Success Stories

The Ideal Island Development

The Project
A natural island located in close proximity to the coast of Abu Dhabi was chosen to become a luxury destination offering various amenities and housing choices as well as a major tourist destination for visitors to the Emirate.

HVS worked hand in hand with the master planners to develop the most suitable luxury island development. We were commissioned to recommend the best use for the 2,000 hectare island. Albeit that the clients had a vision for the island, they were interested in learning the highest and best use of the island. HVS was instructed to recommend facilities, including themes and differentiating factors, for the entire development. We were given complete freedom on our vision allowing us to incorporate all aspects of the development and its location

The Results
In order to perform this extensive engagement and advise on the most viable project concepts as well as incorporate the clients' vision we have performed initial sustainability studies to determine the ideal number of hotel rooms for the island. A detailed analysis of supply and demand within the Abu Dhabi market then allowed us to comment on the ideal size and positioning of each of the proposed hotels within the development. We ventured further and recommended on the ideal theme for each of the four hotels exhibiting their differentiating factors from each other. Furthermore, we conducted a detailed analysis of demand and supply of the luxury residential apartments and villas both for sale and rent in the Abu Dhabi and Dubai area and this helped us analyze the ideal number of residential units and serviced apartments for the development. Through a pricing and positioning analysis we were able to compute the ideal average price per square foot for the residential units within the development. Consequently, our analysis concluded with the provision of indicative profit and loss projections for each component of the development as well as an aggregate return on investment analysis which proved the entire development as well as each individual component to be financially viable.

Overall the project was a great success. Our recommendations included the construction of four hotels, one of which would serve as the island's major tourist hotel. The other three hotels were recommended to be developed as boutique hotels, one of which was a membership only hotel, which we believe would increase the perceived exclusivity of the development. The project is also expected to include a large number of villas all differentiated based on their location on the island, as well as a palace district hidden in the vast forest of the eastern part of the island. The development would also include a marina, equestrian center and shooting range. Overall the end product was one that enveloped all the amenities of a city within a city with the exclusivity offered only by a remote luxury island destination.

The clients were very satisfied with the outcome and we hope to work further with them on this project for the operator search as well as the other projects they currently have underway in the region.

The Client was quoted as saying:

“HVS has demonstrated a collaborative spirit and willingness to adapt to the climate of the client and project team.”