Dubai Holding has launched 40 plots for the development of mid-range hotels in the emirate.
The plots are expected to house 40 hotels adding more than 8,000 rooms to the area. Expected to launch in three years, construction of the properties is set to commence in 18 months, the company said in a statement.
Tecom parks will have 18 plots and the remaining areas will be located in Dubai Properties Group areas.
“These packages offer an excellent opportunity for Emirati small and medium businesses and entrepreneurs,” said Ahmad bin Byat, the chief executive of Dubai Holding.
The hotels will be added to the portfolio of hotels in the three and four-star category. The 40 properties will be part of other hotel names such as the Holiday Inn Express and Radison Blu.
“Metro connectivity in these areas means these are attractive locations for mid-market hotels,” said John Podaras, a partner at Hotel Development Resources.
Plans to increase mid-range hotels in the emirate have been put in place to meet the growing demand expected for Expo 2020. The Dubai Inn has also entered the market with four new properties confirmed by Emaar Hospitality yesterday.
Dubai has 77 five-star hotels, 83 four-star hotels, and 66 properties in the three star category, according to official estimates.
“As a major contributor to Dubai’s long-term economic development, we are excited to be able to play a significant role in achieving Dubai Tourism Vision 2020. We are currently studying a range of initiatives and are proud to announce the first of them today,” said Ahmad Bin Byat, CEO of Dubai Holding.
The mid-range segment is growing not only in the emirate of Dubai but the entire Emirates with many properties opening in the coming year.