New players in the GCC short-stay hospitality market compete for market share – Middle East & Gulf News

It’s no longer Airbnb solely competing with traditional GCC hotels. Other players vie for the action as the hospitality rebound continues. Hotels are steadfastly resisting competition with strong growth, especially in the United Arab Emirates emboldened by Expo 2020.

Stella stays

After experiencing vacation homes for vacation and business travel, Stella Stays noted that consistency was always an issue with the experience, design and cleanliness of managing temporary stays.

Stella Stays, a hotel brand owned by the United Arab Emirates expanded its operations to Bahrain in a bid to compete with Airbnb and disrupt traditional hotel models in the Middle East.

The hotel start-up was launched at the end of 2019, and as of August had 300 properties in the United Arab Emirates, Bahrain and Canada, using a range of properties managed for short, medium and long stays.

Bahrain’s real estate market is experiencing growth in residential construction, with developers developing a significant number of freehold properties, mainly apartments.

The company said its expansion plans sought to take advantage of Bahrain’s booming real estate sector, with 12 billion dollars of real estate projects in preparation.

The kingdom’s regulations on 100% foreign ownership also make Bahrain an attractive place to settle.

Stella Stays units are designed by an in-house interior design team and feature sleek modern furnishings, preloaded Netflix accounts, PlayStation, espresso machines, and over 100 on-demand services in addition to standard hotel type facilities.

The company has already secured an initial round of financing. Now, the company aims to achieve a level of success comparable to that of a similar company in the United States.

Sonder is also fighting for market share

Another operator expanding its presence in the Middle East is Probe, which announced earlier this year that it would go public for a value of $ 2.2 billion.

Probe is addition of two additional buildings to his wallet in Dubai. Through an agreement with Al Fattan Properties LLC, the company will manage and operate two of the three downtown Al Fattan towers overlooking Burj Khalifa, which will be operated as Sonder Downtown Towers.

Comprised of spacious two- and three-bedroom apartments ranging in size from 1,900 to 2,400 square feet, these towers add more than 300 units to Sonder’s existing portfolio of operations in Dubai. The company currently manages and operates JBR Suites, a 164 unit property at Jumeirah Beach Residence (JBR) that has been open to guests for over a year. Sonder is also considering further expansion in the Palm Jumeirah, Dubai Marina, La Mer, City Walk and DIFC areas of Dubai.

Headquartered in San Francisco, Sonder operates in more than 35 cities in nine countries, with approximately 15,000 active and contracted units worldwide.

All Sonder spaces in Dubai come with full kitchens and balconies, as well as access to a fully equipped gym, large swimming pool, and laundry services.

The UAE hotel sector

According to the latest forecast from hospitality industry data provider STR, Hotel occupancy in Dubai is expected to grow 77% year-over-year (year-over-year), with revenue per available room increasing even more than 86%.

This new optimism is reflected in a measure known as the Purchasing Managers Index (PMI) which, as of the first quarter of 2021, the average UAE PMI was up 7.5% year-on-year with a score of over 50 in March, which means market conditions are expanding. .

July’s score was 54, the best since January 2019.

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