Dubai-based developer Deyaar announced that it plans to expand its development portfolio beyond commercial and residential properties, into the hospitality sector.
The move is part of Deyaar’s strategy to diversify within the real estate sector, and will be initiated in Dubai, the company said in a statement.
The company said it has already allotted up to one million square feet for hotel and serviced apartment projects in areas such as Business Bay, along Sheikh Zayed Road, and sites located close to the proposed venue for the Expo 2020, along Sheikh Mohammed Bin Zayed road.
Deyaar is also looking to grow its hospitality portfolio through acquisitions, it said.
Saeed Al Qatami, CEO at Deyaar, said: “Dubai has seen a phenomenal surge in occupancy rates, crossing the 80 per cent mark in high-value areas in 2013. Deyaar certainly has the means to tap into this growing sector, and give our customers a bigger portfolio of investment options to choose from.
“We have a number of projects under consideration, which we hope to reveal soon. Some of these properties will be retained as fully-owned developments under Deyaar, while other projects will be sold to third-party investors.”
Deyaar, which currently offers property development, property and asset management, facilities management and owner’s association management, made a 300 per cent increase in profit last year.
Net profit for 2013 reached Dhs154.5 million, up from Dhs38.6 million the year before, it recently announced. The Dubai developer, listed on the Dubai Financial Market, increased its gross profit for the year from Dhs199 million in 2012 to Dhs307.5 million.
Last month, Deyaar also said that it planned to allow foreigners to start investing in its shares and hold up to 25 per cent of its share capital.
Qatami said: “The demand for residential, retail and commercial properties is on the rise. We are confident that with continued inflow of liquidity into the market, Dubai will sustain healthy growth in its real estate sector.”