Business | Tourism
Dubai World plans more hotel projects
Dubai World is poised to take advantage of the global credit crisis to expand its presence around the world in hotel projects, especially in emerging markets, its chairman, Sultan Ahmad Bin Sulayem, told Gulf News in an exclusive interview.
- By Jane Ferguson, Staff Reporter
- Published: 23:40 November 18, 2008
- Sultan Ahmad Bin Sulayem, Chairman of Dubai World, stressed the need to see opportunities in times of global financial turmoil.
- Image Credit: Ryan Hernandez /Gulf News
Miami: Dubai World is poised to take advantage of the global credit crisis to expand its presence around the world in hotel projects, especially in emerging markets, its chairman, Sultan Ahmad Bin Sulayem, told Gulf News in an exclusive interview.
Speaking on the sidelines of the opening weekend function of the Fontaine-bleau Miami Beach resort - the latest high-profile investment of Dubai World in the United States - Bin Sulayem outlined the investment strategy to make the most of the troubled times ahead.
The chairman stressed the need to see opportunities in times of global financial turmoil. "There are opportunities and you sometimes have to assess opportunities in a crisis," Bin Sulayem said. "We have perhaps missed opportunities in past crises."
In reference to the Fontainebleau Miami Beach resort, in which Nakheel Hotels, a unit of Nakheel that is part of Dubai World, bought a 50 per cent stake in April for $375 million (Dh1.36 billion), Bin Sulayem said the credit crisis had undoubtedly helped secure the investment.
"Had we done this investment two or three years ago, it would have been four times the cost," he said. "Something that did not make economic sense two years ago makes sense now; and valuewise, this could never be repeated again." He also drew on developing markets as a key interest in Dubai World's hotel investment plan.
"We have had a lot of time to identify locations in China," he said. India is also an area being viewed favourably by the company. "Goa is going to be an important area," said Bin Sul-ayem. "It is the holiday place in India."
India is seen by Dubai World as a good investment area for hotel development and Goa is going to be central to the country's tourism industry in the future, he said.
Dubai World plans to maintain its strategy of investing in landmark hotels around the world, with uniqueness and exclusivity as their most attractive qualities.
"Investment-wise, we are very selective," said Bin Sulayem. "We want something with a competitive advantage."
He pointed out that his company has interests in not only the iconic Miami Beach resort, but also other hotels in major cities that boast special qualities. "We want to accommodate tourists in the most attractive destinations," he said.
"In the US you don't see big hotels like this except in Las Vegas." However, as well as top-end, exclusive hotels, the company is expanding its interests in lower budget "Easy Hotels".
"We have about 48 ports around the world - ideally I would like close proximity [of hotels] to the ports," said Bin Sulayem. "So the three-star concept would suit ideally. We are putting one next to Dragon Mall for example. Many visitors are coming from Africa and the region and they need a place to stay nearby," he added.
He also revealed some details of their next Fontainebleau joint project which will be located on the Palm Jebel Ali, Dubai. "It's going to be a lifestyle hotel," he said. "It will be a resort." The hotel will have a large "Seaworld Park", he said: "We are taking he bet of Seaworld." Bin Sulayem, however, would not reveal any timescale for the new hotel, as it was still "in the drawing stage".
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