Retail therapy pushes hotel ADR up 25%

UAE’s Mall of the Emirates attracted 56 new hotels into its vicinity over the last 10 years. Hotels developed in and around the region’s shopping malls can expect to post an Average Daily Rate (ADR) 25 per cent higher than hotels that are not co-located with a major retail development. The findings are published in a report by Colliers International, released ahead of Arabian Travel Market 2017, which takes place April 24-27, at Dubai World Trade Centre. As part of its experiential travel series, Colliers concluded that hotels such as those clustered around Dubai’s Mall of The Emirates and The Dubai Mall, enjoy stronger business performance overall — not only beating seasonal fluctuations in tourist arrivals, but contributing in the drive to attract more tourists over the traditionally quiet summer season.
Simon Press, Senior Exhibition Director, Arabian Travel Market, said: “In the UAE, the idea of a combined retail, leisure and entertainment destination has really taken off. We have hotels attached to malls and, as such, these are much sought after properties. There is massive demand for urban tourism from Indian, Arab and Chinese visitors. “Since the opening of Mall of the Emirates in 2006, the number of hotels and serviced apartments in the area has risen from four to 58 in 2017, totalling 8,654 keys. While only two of these hotels are physically part of the mall building, the remaining 56 have also demonstrated strength across all performance metrics.”
For retail tourists, shopping malls and the facilities they feature – from indoor ski slopes to aquariums – form an integral part of trips to the UAE. Hotels capitalise on this by offering promotional packages and free transportation, as well as cross marketing discounts and free vouchers with retail partners. “The theme behind Arabian Travel Market 2017 is experiential travel and that brings with it a desire for bigger and more compelling experiences. The retail landscape of the GCC and UAE in particular, certainly performs in line with this,” added Press.
It is noticeable the number of shopping malls/entertainment centres now exhibiting at ATM. This year we have 401, including: Al Shaab Village, Sharjah; Chic Outlet Shopping; Fashion Arena Prague Outlet; Freeport Lisboa Fashion Outlet; Istanbul Shopping Fest; La Roca Village in Barcelona and Las Rozas Village in Madrid; and Westfield Europe Ltd. The UAE has the strongest retail tourism sector in the region and Dubai takes the lead among the seven emirates – with retail accounting for more than 40% of total tourism spending.