Dubai Lifestyle City construction on schedule despite downturn

Dubai: The three Marriott hotels being built in Dubai Lifestyle City are set to hit 80 per cent occupancy when they open, according to the project's managing director.

The hotels include the five-star JW Marriott with 170 rooms including chalets, the four star 150-room Marriott Courtyard and the 46 Marriott Executive Apartments.

"We have a healthy RevPAR (revenue per available room) and we expect between 70 to 80 per cent occupancy," Arif Rahman, managing director, told Gulf News, without giving further details on expected revenues.

These hotels will be crucial in Marriott's aim to increase its Middle East hotel room supply by more than 250 per cent over the next few years, the hotel chain said on its website.

While other projects in Dubailand have suffered delays in their construction, Dubai Lifestyle City is progressing well, due to its relatively small and manageable size, said Arif Rahman, the project's managing director.

The pipework is all being laid now, the electricity and water substations are done and the roads are almost complete, Rahman added.

Due to the partnership with Marriott, the residential portion of the development will be named the JW Marriott Residences.

While quality of construction has been a familiar gripe in Dubai among residents of certain projects, quality, security and safety in the residences will be in line with Marriott's international standards.

Though Dubai Municipality says you don't need sprinkler systems in villas or apartments, Marriott will be installing sprink-lers in the residences, explained Raza Siddiqui, executive director.

There will be 68 villas, with five different types ranging from 10,000 square feet built-up area to 20,000 square feet.

Each villa theme is also given a name, such as Siena, in line with the Tuscan theme of the project.

There will be 120 regular, duplex and penthouse apartments and the construction contract has already been awarded to Saleh Constructions.

Around 500 people are now working onsite.

The project sits on four million square feet of land and is the brain child of ETA Star Group.

Construction is due to start on the JW Marriott and the IMG Academies this month with the entire project due for completion by the end of 2012 and the show home open in February 2010.

Two main artery roads, aside from Emirates Road, will ensure that traffic isn't an issue for residents or visitors to the development.

Despite the global financial downturn which has had a significant impact on Dubai's own property sector, including an easing of real estate prices and rents, Rahman is confident that the sales prices for properties in Dubai Lifestyle City are appropriate.

About 50 per cent of the residential units have been sold so far.

"Even in the good times we were never overpriced. We discouraged speculators and investors&so we're not too high and we're not too low," Rahman said.

However, the average price for a villa is between Dh20 million and Dh40 million. The average price for an apartment is Dh5 million to Dh8 million.

Defaults have occurred only "sparingly", said Rahman.

Aside from the residences and the hotels, there will be the IMG Academies which will consist of a tennis academy, a golf academy and seven swimming pools, including an Olympic sized pool, a dive pool, a leisure pool and one specifically for women and children.

There will also be a small retail centre, office space, an auditorium and a large greenhouse because what people miss in this region is water and greenery, said Rahman.