Sunday, January 8, 2017

Schon's Massive New Dh3.2Billion Mega Project

>The development of 2,700 hotel apartments at a single-site development near Dubai South – home to the 140-square kilometer future city that hosts Al Maktoum International Airport and Expo 2020 site

>With a development value exceeding Dh3.2 billion, this is the largest single-site hotel apartment project in the Middle East and North Africa region

>Investors are guaranteed a 12 percent average annual return – the highest for property investors

Schon Properties, recipient of the Top Private Developer award for 2016 by Forbes Middle East, announces the development of iSuites – a massive Dh3.2 billion (US$870 million) home-grown hospitality portfolio that will see the development of 2,700 hotel apartments at a single site within Dubai Investment Park – close to the World Expo 2020 site.

The entire complex includes 21 mid-rise buildings – each having 9 floors including two basement floors – and will be delivered by 2020, just before the historic Expo 2020 begins in the fourth quarter of 2020.

The branded hotel apartments will be managed by international hotel operators to offer greater comfort to visitors. Part of the iSuites inventories will be offered to investors that guarantees a high return on investment.

Sales of the iSuites are currently on as investors and buyers could now purchase a hotel suite or a service apartment that will be managed by international branded chain hotel operators and offer buyers a higher income of 12-15 percent.

“We are launching iSuites – a home-grown urban hospitality concept from the UAE targeting millennials as the country moves forward to realize the government’s Vision 2020,” Noorul Asif, Chief Operating Officer of Schon Properties, says.

“Dubai, which has 100,000 hotel rooms and hotel apartments, will need 40,000 new hotel rooms and hotel apartments within less than 46 months, as the clock is ticking for Expo 2020 – the largest exposition to take place in the history of the Middle East – that the city of Dubai will proudly host.

“In order to help align with the Dubai Government’s Vision 2020, Schon Properties has stepped up its efforts to support the government’s tourism vision that will prepare the city to host 20 million hotel guests per year by 2020 and support the 25 million visitor traffic to the Expo 2020 site.

“iSuites is our own development plan that further strengthens the Government of Dubai’s vision. We have gathered all our resources to realign our development game plan to ensure the timely delivery of the project that will be connected to the Expo 2020 site with the new metro line.

“So, visitors to Dubai could check into iSuites within ten minutes of arriving at the Al Maktoum International Airport, as the project is located just two stations from the world’s largest greenfield airport development project within Dubai South.”

iSuites – a lucrative investment product – will help contribute to the economic growth of the UAE and help realize the country’s vision 2020 and 2030. Schon Properties, which will retain a third of the 2,700 units in iSuites, will offer a limited number of units to the public to purchase and benefit from a higher return on investment.

iSuites envisages smart modern living of functional and futuristic facilities. The full-serviced hotel apartments are targeting millennials interested in urban lifestyle hotel stays, small families coming to Dubai on a short- term corporate assignment or a pure family vacation.

“Our study shows that an investor could get an average net income yield of 12 percent return on investment from our latest offering – iSuites – that will help investors make more money with less pain,” Noorul Asif says.

“The yield is backed by strong numbers of tourists coming in the proximity of the iSuites site which will lead to strong occupancy levels and high average daily rates (ADR’s). The movement of 160 million passengers through Al Maktoum International Airport, 25 million tourists to the EXPO 2020 site and 5 million annual tourists at Dubai Parks and Resorts – are the three mega demand drivers for iSuites. All these projects are what most of us in Dubai are banking on, and with our location next to them, we are very confident in the long-term prospect of the venture.

“Dubai’s hospitality market is segregated and spread throughout the city, but there are niche tourism hot spots which are expecting massive gains in the next 3 years. Jumeirah Village, Business Bay, and Dubai Marina and other master communities are not niche hot spots as they are far from the main attractions.  Dubai Investment Park, being located directly next to EXPO 2020 is a major niche tourism hot spot and will give high returns to investors.

“In all probability, the annual income yield could exceed 15 percent, in which case, the investor could get back the entire value of the investment in less than seven years. Our views on this are clear by retaining over one-third of the development going forward. On top of this, I expect 50 percent capital appreciation on the asset over the next three years, due to the site’s prospects.”

iSuites strategic location being next to the world’s largest airport – Al Maktoum International Airport – assures high occupancy rates and secure income for investors. The iSuites features over 52 restaurants and cafes boasting outdoor areas overlooking the Crystal Lagoon as part of a master-planned development. iSuites includes a 125,000 square foot retail promenade called the Laguna Centrale Mall. This includes urban themed cafes dedicated for entrepreneurs, kids play areas and nanny services available for all guests. Bank, retail, spas, supermarkets, pharmacies, healthcare facilities, and shopping are available at the Laguna Centrale Mall to give full service to all guests for the hotel development.

“iSuites is the commencement of Schon’s restructuring plan and change of development direction, fully focusing on hospitality ventures going forward.  The future of Dubai is hospitality, and with HH Sheikh Mohamed Bin Rashid’s vision for 20 million tourists, the city has a bright future with unparalleled infrastructure and the best tourist attractions in the world. We offer everything form ski slopes, to the dessert, to culture, to arts, to beaches, to year round sunshine, all with 100 percent security, hence, we believe tourism is the best investment in Dubai.”

The Department of Tourism and Commerce Marketing (DTCM), the emirate’s tourism industry regulator, said, Investment in Dubai’s hotel industry is expected to pick up in the next four years with additional 40,000 serviced hotel rooms and hotel apartments to be added to the existing inventory of 100,000 – to serve the anticipated 20 million hotel annual guests by 2020, in addition to the 25 million visiting the World Expo 2020.

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