IFA Hotels a Resorts launches hotel condominiums in Fairmont Palm Jumeirah in Dubai (United Arab Emirates)
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IFA Hotels a Resorts launches hotel condominiums in Fairmont Palm Jumeirah in Dubai (United Arab Emirates)
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Category: Middle East - United Arab Emirates - Industry economy
- Hotel opening
This is a press release selected by our editorial committee and published online for free on 2009-11-16
IFA Hotels & Resorts (IFA HR), the largest foreign investor on the Palm Jumeirah, announced today the launch of its second hotel condominium ownership product in the Middle East.
Situated within the five-star Fairmont Palm Jumeirah hotel in Dubai, the new offering is of particular interest to investors wishing to diversify their property portfolio with a unique real estate option that combines both the business of guaranteed rental returns and strong capital growth potential with the pleasure of a hassle-free vacation property.
The concept allows initial investors to buy a fully furnished, five-star branded hotel room, within a rental pool system that guarantees annual returns of 10% per year for the first five years, underwritten by IFA Hotels & Resorts during the hotel�s stabilization phase, and a guaranteed buy back premium of 10% after five years from the hotel's opening. Owners also enjoy access to the accommodation and exceptional amenities managed by Fairmont Hotels & Resorts for a total of up to 30 days each year.
Werner Burger, President & COO of IFA HR stated: "Worldwide, hotel condominiums are one of the fastest growing sectors of the real estate industry. As the first company to introduce the concept of hotel condominium ownership to the Middle East, we have seen its appeal continue to grow, particularly in markets like Dubai where hotel occupancy is still one of the highest in the world."
In uncertain times, investors can also rely on the added security of investing in a Dubai-based hotel product. A study published by STR Global in June 2009 showed Dubai continues to lead global hotel occupancy rates, outperforming Paris, New York, Singapore and Tokyo among others. Within Dubai, beach hotels and resorts continue to earn higher revenue per available room compared to similar hotels in the City.
In fact, consistent growth reported by Dubai International during the first eight months of 2009 has seen the year-to-date passenger traffic at the airport increase 6.7 %, with double-digit growth recorded over the recent summer months. This contrasts sharply to the 7 % contraction seen in international passengers worldwide year-to-date as reported by Airports Council International (ACI). Far from contracting, Dubai International is on track to set a new record of 40.5 million passengers for 2009 and is predicting an increase in 2010 to more than 46 million passengers.
Combined hotel and air traffic statistics continue to show that despite the global downturn, Dubai has not only held its own as an international destination, but has surpassed well-established market-leaders making it the only top 10 airport in terms of international passenger traffic to still record positive growth. These positive air traffic figures will inevitably translate into consistently high hotel occupancy rates.
Piaras Moriarty, VP Client Management, IFA HR comments: "With banks' deposit rates at historical lows the purchase of a hotel condominium property is an attractive alternative for those wishing to diversify and improve the return of their investment portfolios."
Leading luxury hotel operator, Fairmont Hotels & Resorts, will be responsible for the day-to-day administration, marketing, servicing and maintenance of the hotel.
The Fairmont Palm Jumeirah is situated on the western portion of the trunk of Palm Jumeirah island and has reached the top level of construction. The five-star beach hotel will host 381 fully furnished rooms and suites with spacious balconies overlooking elegantly landscaped gardens, pools, the Arabian Gulf and the Dubai Marina. The hotel will also include extensive conference facilities, a selection of food and beverage outlets, a well-equipped gym, a Willow Stream Spa and outdoor leisure amenities including a private beach and pool complex, sports club and kids club.
Burger concluded: "Based on feedback from our current customers, we know that there is a strong regional demand from discerning investors for a product that offers financial returns combined with problem-free luxury vacations in a professionally managed resort. We are confident that this product will not only meet investor demand, but will also exceed expectations."
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