Dubai's Tourism Vision 2020 initiative spurs JV mixed-use development

Dubai's iSuites multi-use development will feature its 2,550-room hotel, both opening in 2020.

Inspired by Dubai's Tourism Vision 2020, a joint venture between Schon Properties and Al Hamad Group have agreed to develop a new $870-million multi-use project called iSuites in Dubai with a targeted opening of Q2 2020. To fill the deficiency in four-star hotels, the mixed-use property, spearheaded by Dubai Civil Engineering, will include a 2,550-room hotel. 

The 2.6-million-square-foot development will be next to Al Maktoum International Airport, which will be the largest in the world after its $30-plus billion expansion. Partially surrounded by a man-made beach and lagoon, the 21-building complex will include a 125,000-square-foot mall, 52 restaurants and cafés. 

Nashat Sahawneh, chairman of Al Hamad Contracting, a subsidiary of Al Hamad Group, said in a statement that the project, “will help support the Dubai government’s vision to create 140,000 hotel rooms for tourists and visitors to the emirate.” As of the end of 2016, the city’s hotel stock totaled 78,500 rooms, according to a JLL report.

The Dubai government has been pushing their tourism initiative supporting its goal to attract 20 million annual visitors to the city by 2020. 

The report claimed new projects and a weak Euro and British Pound caused RevPAR and ADR to dip in 2016. In turn, occupancy remained low at 77 percent. However, the country's efforts to provide the requisite amount of demand will allow it to meet the planned onslaught of new supply. 

“Key factors to drive demand growth will be an increase in leisure offering, stronger efforts of the Department of Tourism and Commerce Marketing to promote Dubai to growing markets such as eastern Asia and more new direct routes to Dubai International Airport," the JLL report stated.  

Various hospitality developers also plan to support Dubai government's initiative by including Dubai in their plans for the next four years. Dubai-based Meraas will open the 479-room Re Vera Bluewaters Resort and Vivus Bluewaters along with their launch of four new hotel brands in the area. Meraas's 20 million-square-foot luxury waterfront Dubai Harbor is also in development. It will have some lodging properties, including a luxury hotel within the 443-foot-tall Dubai Harbor Lighthouse.

Today, Mandarin Oriental Hotel Group signed a deal with developers wasl Asset Management Group to manage its second luxury brand hotel and residences in downtown Dubai also opening in 2020. The signing follows the two company's first deal for the Mandarin Oriental Jumeirah Beach, Dubai currently under construction and opening in late 2018.

The tower with include 257 guestrooms, suites, serviced apartments and the 144-room Residences at Mandarin Oriental