Special Report: Furnished apartments lure big hotel brands

The big names in the lodging industry have started to make their presence felt in the furnished apartment sector. Be it Marriott, Le Meridien or the Rotana, all have now ventured into this still emerging sector.

Seemingly, Dubai's furnished apartments are teeming with acivity, and despite the entry of many a brand name, there is still room for further expansion, suggest industry sources.

The reasons are quite simple - many of the people coming to Dubai prefer the convenience of a furnished apartment rather than take the trouble of renting out an apartment or villa.

Such visits can vary from just a few days up to a year.

The nature of project work is driving demand for luxury furnished apartments in the emirate, says Elaine Watson, general manager, Dubai Marriott Executive Apartments.

The market is also being kept alive by GCC families visiting the emirate for events such as the Dubai Shopping Festival and Dubai Summer Surprises.

Because Dubai is a "transient community" the amount of furnished apartments is probably higher than in other parts of the world, says Watson.

At the Dubai Marriott Executive Apartments - which has 172 fully furnished furnished apartments - most of the guests are European business people.

At the Rihab Rotana Suites, which has been open for three years, about 35 per cent of the rooms are occupied by "long-term" guests, said Kinan Al Ghraoui, general manager.

"I have some guests who have been here since the opening. The other 65 per cent tend to be short-term holiday makers that come from Saudi Arabia, Oman, Qatar and Kuwait for the DSS and DSF."

While the summer is dominated by leisure travellers, corporate guests are set to return by October.

At the new Al Sondos by Le Meridien property, the visitors are broken down into three sectors, explained Naif Zureikat, general manager.

"We have GCC families; corporate; and longer-stay visitors. Our location is key here - close to the business districts in Deira, the leisure complex at Deira City Centre, and the airport - as is our premium service offering.

"We are committed to offering value-added rates to strengthen the growth in pan-Arab travel."
Due to the stable nature of the Dubai economy, which has encouraged more and more international companies to increase their presence, the number of long-stay visitors is on the rise, says Zureikat.

"For this customer sector, a furnished suite or apartment, as opposed to a traditional hotel room, is often a more suitable option. But the suites are not just for businessmen. They will also suit families down to the ground – especially during consumer festival periods."

According to the industry experts, guests enjoy the ability to "do their own thing" while having the support of services generally offered in four or five star hotels.