The developers in the region have realized that there is
nothing quite like the lure of luxury and are discovering that associating a
prominent brand with a Hospitality and Real Estate project is a winning formula.
While the region’s retail sector is closely associated with global luxury
designer labels, the hospitality and Real Estate industry is catching up now.

According to Chibeb Ben Mahmoud, Executive Vice President
and Head of Hotels and Hospitality Group Jones Lang La Salle, designer hotels
have identified Dubai as an important market as the city strengthens its role
as business and leisure hub.
The Armani Hotel, Dubai, flagship property of Armani Hotels
and Resorts is the prime example of luxury branded hospitality in the region.
The Armani Hotel recently celebrated its fourth anniversary following their
successful strategy.
According to Harmen de Jong, Partner – Development Consultancy
at Knight Frank, Before the launch of Armani Hotel in 2010, Dubai’s Hotels were
primarily segmented into branded full service, select-service and unbranded
independent hotels. The segmentation was driven by demographics, i.e. age, disposable
income, and ethnicity. However, operators in Dubai realized that there was a
potential gap in the market, as the segmentation and demand was driven by
popularity of boutique and lifestyle hotels elsewhere. The designer hotels provide
more options to the guests travelling to this region and eventually create a
competitive market.
The market is expected to be more competitive as more luxury
designed hotels are scheduled to open in Dubai in the next few years.

Another designer brand, Bulgari, will be venturing into the
Hospitality industry as it has signed a deal with a Dubai based real estate
developer Meraas Holding to build a Bulgari hotel on Jumeirah Bay Island off
the Jumeirah Beach Road in Dubai. This Hotel will be the world’s 5
th
Bulgari Hotel and Resort property, comprising
100 rooms and suites, along with 20 hotel villas spread over 1.7 million sq ft.
The property will be designed by Italian architectural firm Antonio Citterio
Patricia Viel and partners, and it will feature a marina and will have a mix of
traditional and modern themes. The property will be sculpted into the shape of
a Titanic horse.
Lamborghini is another designer brand is eyeing the emirate
for its next hospitality venture. A Lamborghini hotel in Dubai is in the
discussion phase at the moment. Other brands like Cavalli and Baccarat have also
been in the talk for hotel projects but no formal announcements have been made
yet.

In the meantime, Versace is well underway with the Palazzo
Versace Hotel in the Culture Village District, scheduled to open end of next
year. The Hotel will be the world’s second Palazzo Versace Hotel, comprising
215 luxurious hotel rooms and 169 one to six bedroom condominiums. Around 95
per cent of the condominiums have been sold and those who have bought them can
use the Hotels’s adjoining facilities. The project is being developed by
Enshaa, a local Real Estate development in Dubai. The prices of the condominium
started at 2.5 million when they were launched initially, with an option to
select from a fully furnished residence and personalized by Versace.

Another well known luxury designer, Fendi has tied up with
local Real Estate developer Damac Properties for a first Fendi styled residence
apartment designed by Fendi Casa in Dubai. Damac Rezidence will feature interiors
designed by Fendi Casa, situated in Dubai Marina, comprising of 200 apartments
housed on 43
rd and 84
th floor of Damac Heights, a luxury
property for the style-savvy investors. Work is underway for this project and
is expected to be completed in 2016.
Experts believe that growing interest of luxury brands is
good news for Dubai. However, while the high standard required by the luxury
brands will be a mechanism for further improvement and there could be obstacles
along the way.
According to Jason Lewis, Founder and Managing Director of
Limah Design Consultants, these designer brands are so well ingrained into the
public mind with defined values, positions and styles, that designing new
components to brand takes new consideration. Although rewarding, it is only
through careful research and design exploration to uncover the brand essence
and then communicate that in new forms.
While Challenges are inevitable in such monumental
developments, will the projects eventually pay off in the long run?

Designer-branded Hotels are aligned with the perceived
attributes of Dubai. In the Middle East, in general, as well as Dubai, Hotels
have been tightly linked with the rest of the social and business community.
Therefore, the success of these hotels depends on the extent to which these
Hotels can position themselves in the social context that they operate and also
on the service infrastructure. While there are many new hotels opening, there
is no need to worry about an oversupply of the branded property, as these
hotels remain a very limited group within the hospitality industry, said Chibeb
Ben Mahmoud.
Dubai has one of the largest concentrations of 5 star hotels
of any major city in the world and one of the highest occupancy rates for hotel rooms.