29 July 2009
Nuran Serviced Residences, a part of Emaar Hospitality Group, plans to target leisure segment in the GCC to boost its occupancy levels, said a senior executive of the hospitality company.
Socrates Alvaro, General Manager, Nuran Serviced Apartments, told Emirates Business: "The big opportunity lies in the GCC market, especially in Saudi Arabia, Qatar and Kuwait."
Nuran, which was part of the Dubai Tourism and Commerce Marketing (DTCM) road show, received a positive response from the Qatar and Saudi markets, he added.
Emaar Hospitality Group operates two properties in Dubai - Nuran Marina Serviced Residences at Dubai Marina and the Nuran Greens Serviced Residences. A third and flagship Nuran serviced residence is being planned in Downtown Burj Dubai.
According to statistics from the DTCM, at the last count, there were 165 functioning hotel apartments in Dubai offering more than 14,000 rooms.
Nuran would be catering to the demand from family groups from the GCC. It has also come out with special packages for this region.
Alvaro said: "A big difference this summer, that is, July and August, we have been focusing on the leisure market, simply because demand from the corporate segment has decreased".
He said last year the corporate segment was 73 per cent of the market and there was constant demand.
This year, because of the economic turmoil, a lot of companies have reduced their travel, which has impacted on the occupancies in Dubai, said Alvaro. Last year, leisure contributed to only three to four per cent of occupancies. "This year, we are looking at a shift in the market segment. Leisure now contributes to almost 10 per cent of occupancies," he said.
Regarding Nuran's expansion plans, Alvaro said the company planned to get into management contracts with firms (managing serviced apartment).
He said the development team was actively looking at this prospect, but it would depend on the property and the location, which has to be similar to Nuran's existing properties.
Serviced apartments in Dubai, like the hotels, are going through challenging times. Alvaro said: "The demand is still there, but it is a lot more competitive."
Nuran has an occupancy rate of about 70 per cent at both its properties. " We are fortunate that we have a good corporate base and we have a lot of medium to long staying guests," he said.
One of the key differences from the first quarter to this quarter is that the rates are getting more competitive and that the clients are getting more rate conscious.
Another trend that is evident, Alvaro said, is this time around there are shorter leads. People are booking rooms at the last minute and closer to the time of travel.
The company plans to utilise Dubai's location as a hub and work with airlines on stopover programmes.
Nuran Serviced Residences, a part of Emaar Hospitality Group, plans to target leisure segment in the GCC to boost its occupancy levels, said a senior executive of the hospitality company.
Socrates Alvaro, General Manager, Nuran Serviced Apartments, told Emirates Business: "The big opportunity lies in the GCC market, especially in Saudi Arabia, Qatar and Kuwait."
Nuran, which was part of the Dubai Tourism and Commerce Marketing (DTCM) road show, received a positive response from the Qatar and Saudi markets, he added.
Emaar Hospitality Group operates two properties in Dubai - Nuran Marina Serviced Residences at Dubai Marina and the Nuran Greens Serviced Residences. A third and flagship Nuran serviced residence is being planned in Downtown Burj Dubai.
According to statistics from the DTCM, at the last count, there were 165 functioning hotel apartments in Dubai offering more than 14,000 rooms.
Nuran would be catering to the demand from family groups from the GCC. It has also come out with special packages for this region.
Alvaro said: "A big difference this summer, that is, July and August, we have been focusing on the leisure market, simply because demand from the corporate segment has decreased".
He said last year the corporate segment was 73 per cent of the market and there was constant demand.
This year, because of the economic turmoil, a lot of companies have reduced their travel, which has impacted on the occupancies in Dubai, said Alvaro. Last year, leisure contributed to only three to four per cent of occupancies. "This year, we are looking at a shift in the market segment. Leisure now contributes to almost 10 per cent of occupancies," he said.
Regarding Nuran's expansion plans, Alvaro said the company planned to get into management contracts with firms (managing serviced apartment).
He said the development team was actively looking at this prospect, but it would depend on the property and the location, which has to be similar to Nuran's existing properties.
Serviced apartments in Dubai, like the hotels, are going through challenging times. Alvaro said: "The demand is still there, but it is a lot more competitive."
Nuran has an occupancy rate of about 70 per cent at both its properties. " We are fortunate that we have a good corporate base and we have a lot of medium to long staying guests," he said.
One of the key differences from the first quarter to this quarter is that the rates are getting more competitive and that the clients are getting more rate conscious.
Another trend that is evident, Alvaro said, is this time around there are shorter leads. People are booking rooms at the last minute and closer to the time of travel.
The company plans to utilise Dubai's location as a hub and work with airlines on stopover programmes.
By Nina Varghese
© Emirates Business 24/7 2009
