Hotel operations of Palazzo Versace Dubai will not feel any impact from property sale
'We retain beneficial right of entire building until 2028', says Palazzo Hospitality chief
Dubai: The hotel operations of Palazzo Versace Dubai will not be impacted in any way by the auctioning of the development and the possibility of a new buyer coming in.
This was stated by a top official at the 215-room luxury hotel, one of the signature hospitality destinations in Dubai.
“The hotel has an exclusive management contract with Palazzo Hospitality Services, with contractual and exclusive rights of operation secured until 2037,” said Monther Darwish, Managing Director of Palazzo Versace Dubai, as well as being Chairman and founder of Palazzo Hospitality.
“We retain the beneficial right of the entire building until the year 2028.
“Nothing will be changed in the management contract - Palazzo Versace Dubai is solely managed and operated by Palazzo Hospitality Services.
"We are aware of the misleading allegations implying that Palazzo Versace Hotel is implicated in the financial difficulties of Emirates PVD, the building's owner and developer. We firmly deny these facts."
The property came up for auction again earlier this week, with the base price set at Dh1.34 billion. There was an earlier bid for a sale of the property through an auction in May - but was pulled out after a couple of days.
The recent developments concerning Emirates PVD and the listing of the hotel on auction does not impact our day-to-day operations or our commitment to delivering exceptional service
The development has been of keen interest to multiple potential investors, who will now be looking to see whether anyone puts up the Dh1.34 billion in the next few days. (Dubai real estate market had seen multiple high-profile projects, existing ones as well as those that were delayed in construction, go through successful auction bids.
75-80% average occupancy
As for Darwish, he is looking only at how the hotel has been performing. “We're averaging 75-80 per cent during the peak season, with expected lower occupancies during the soft season to up to 45-50,” he added.
In terms of room yields, there has been ‘no change at all. We're much in line with the performance of the destination, and we've been constantly working to adjusting to the market trends when it comes to the (room) pricing strategy.
“We pride ourselves in being one of the busiest city resorts and a top (of the) mind recall for most of the corporate clients when it comes to groups, exhibitions, conferences and also social events.
On whether there will likely be any major renovations in the near future, Darwish said: "We have been focusing on preventive maintenance... the hotel is an excellent shape. Minor renovations works have been done throughout all these years, to maintain the standards."