German hospitality group Steigenberger has opened its Middle East first property in the Business Bay district of Dubai, the company said in a statement.
The hotel will have 367 rooms, the hotel will have 28 suites and four restaurants. The property will also have banquet and conference halls, including a daylight ballroom for 450 people, four meeting rooms, a boardroom, library and outdoor terraces.
The property is owned by Twenty14 Holdings, the hospitality investment arm of Abu Dhabi-based retail firm LuLu Group International, the statement added.
“Dubai is now one of the world's leading tourism and business hubs and the perfect springboard to this important region,” said Steigenberger Hotels AG’s chief executive Puneet Chhatwal.
“The new hotel is symbolic of our growing international presence at strategically important locations."
The group is also planning other properties in the region with the InterCityHotel Culture Village in Dubai and the Steigenberger Hotel Airport Road Doha in the pipeline. It did not mention timeframes for these properties.
Dubai has become a hotbed for international hoteliers who are hoping to cash in on the emirate’s tourism boom. However the recent economic slowdown in Russia and China- two of Dubai’s key tourism source markets- has evoked concerns of slowing returns for hoteliers in an extremely competitive market.
A recent report from Deloitte and STR Global showed that the demand for hotel accommodations in Dubai had considerably slowed to 5.1 per cent in the first nine months of 2015, from 6.4 per cent in 2014.
Meanwhile the supply of hotel rooms to the market rose by 6.7 per cent, outpacing demand. The mismatch between demand and supply pushed down the occupancy rate by 1.3 per cent, the report said. Average daily rates also fell as a result of this imbalance.
Dubai had 369 hotels in July 2015, according to data provided by STR Global. This reflected a compound average growth rate of 5.25 per cent from the 233 hotels in 2006.