meed-logo

line1 line2 line3
SIGN IN / REGISTER

UAE luxury hospitality builds momentum

9 May 2023

 

Register for MEED's guest programme 

Jumeirah Group enjoyed a year of strong growth in 2022, with both improving financial results and several new property launches.

So far in 2023, it is also on track to hit its growth targets, thanks to ongoing demand for luxury hospitality, despite a slight softening overall in the Dubai market.

“We’re on track with our broad financials for 2023,” says CEO Katerina Giannouka (pictured right).

“We have seen a softening in average rate [in line with the market], but while the market lost in RevPAR, we improved our position vis-a-vis our competitors, so our revenue generation index that manages relative performance is up, and we’ve actually gained market share over the first quarter of the year.”

According to Giannouka, 2022 was “an exceptional year” for both Dubai and Jumeirah Group for several reasons. An important factor was Dubai's pandemic response. The emirate was one of two markets worldwide, alongside the Maldives, that reopened to international travel post-Covid in a “relatively eased way”, she says.

However, while the Maldives restarted tourism out of necessity due to its complete dependence on the sector, Dubai’s reopening was strategic and “really set a standard” in how to resume business post-pandemic. This was of considerable benefit to Jumeirah Group, which, notes Giannouka, saw a continuation of growth in luxury consumption throughout the pandemic.

“In combination with that, a lot of additional travellers came here, and then, post-Covid, people’s propensity to spend on travel post-Covid really increased,” she adds. “It also came with good financial discipline – so all of these factors helped Jumeirah to have a very strong year in 2022.”

International expansion 

Globally, the luxury hotel market is set to grow to $238.5bn by 2028, rising at a compound annual growth rate of 10.4 per year from a value of $93.43bn in 2020, according to Fortune Business Insights.

Jumeirah Group has also been physically expanding apace. In the past 18 months, the group has opened hotels in the Maldives; in Capri, Italy; and in Bahrain. In February 2023, it acquired Le Richemond, a historic hotel property in Geneva, Switzerland.


Jumeirah Group's acquisition of its first property in Switzerland, Le Richemond on the banks of Lake Geneva, forms part of its strategy to build its brand profile in gateway destinations across the world

Looking ahead, it plans to continue to expand its brand internationally. “Now we’ll also be looking at resort destinations, [with the] focus initially on Europe, and then we will look to diversify into the US and also into Asia, continuing with both city hotels and resort destinations,” Giannouka explains.

The group will open the Marsa al-Arab hotel in Dubai in the next 12 months. Giannouka touts the property – with its 386 rooms, 10 food and beverage venues, and location adjacent to an 82-berth super yacht marina – as a “keenly awaited” destination for the group that “will truly be our new expression of hospitality here in Dubai”.

All eyes ahead

The group’s immediate targets for 2023 are for further growth on top of 2022’s performance. As an incoming CEO, Giannouka admits this is “always a challenge, but I’m glad to report that in the first quarter, we’re on track for another year of growth.”

Jumeirah Group’s 2023 performance will be supported by opening its first hotel in Saudi Arabia, the Jumeriah Jebel Omar in Mecca, in the next six months – a key location that should benefit from both the country’s rising pilgrim numbers and broader tourism market growth. This will be followed in 2024 by the launch of the 180-room Jumeirah The Red Sea.

“Beyond that,” she expands, “we are putting together a growth strategy as part of a five-year plan, and that will include Saudi Arabia. With a market that’s looking to attract 100 million travellers, there’s space for Jumeirah and the Jumeirah brand is very well recognised, even though we don’t have any hotels there today. It’s a natural place for us to have properties [and we expect that we] will perform well there.”

In the next five years, the group plans to expand from 150 to 200 properties by adding 10-12 properties a year, whether new builds or conversions of existing properties.

Additionally, it aims to reduce its carbon footprint by 25 per cent by 2025, building on existing schemes that have used artificial intelligence and behavioural science to tackle food waste and emissions.

As Giannouka adds: “We take our environmental responsibilities very seriously, and we are committed to making a positive impact on the planet.”

Main image: The five-star Jumeirah Marsa al-Arab is part of a broader development led by Dubai Holding that will include a superyacht marina, a series of ocean-facing, six-bedroom villas and a boardwalk

https://image.digitalinsightresearch.in/uploads/NewsArticle/10822833/main.gif
John Bambridge

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Tender issued for Libyan gas project

    17 September 2026

    An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

    The bid submission deadline is 2pm today (17 September) Libyan time.

    The scope of the project includes provision of:

    • An environmental baseline study (EBS)
    • An environmental impact assessment (EIA)
    • An environmental management plan (EMP)

    The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

    MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

    The joint venture owns and operates six major oil and gas fields across the North African country.

    According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:

    • Libyan environmental legislation
    • Ministry of Environment requirements
    • NOC environmental guidelines
    • Applicable international environmental standards and best practices

    The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

    The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

    It has six main packages:

    • Onshore package
    • Offshore Structure A
    • Offshore Structure E
    • Subsea pipeline package
    • Site preparation work
    • Carbon capture and storage facility

    Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

    Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

    The existing onshore complex includes housing, processing units, storage facilities and export facilities.

    It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

    The planned expansion of the complex will involve:

    • Construction of a new fourth gas processing train
    • Construction of a third condensate train
    • Construction of a third natural gas liquids fractionation train
    • Construction of a fourth sulphur recovery unit train
    • Installation of a hydrogen sulphide enrichment unit
    • Installation of a sulphur recovery unit
    • Construction of other associated facilities

    The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748920/main.png
    Wil Crisp
  • Nakheel awards $218m Dubai Islands buildings deal

    17 September 2026

    Register for MEED’s 14-day trial access 

    Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.

    The contract was awarded to the local firm Metac General Contracting Company.

    It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.

    Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

    The works are scheduled for completion in late 2028.

    Bay Grove Residences will ultimately comprise 1,154 homes across 15 buildings. Planning is under way for the remaining 617 homes in phases two and four, with further contract awards expected.

    In August last year, Nakheel awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes constructing 636 villas.

    In April this year, another AED527m ($143m) contract was awarded to local firm Al-Nasr Contracting Company to construct the primary infrastructure and utilities works on Island B at the development.

    The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

    The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

    The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748850/main.jpg
    Yasir Iqbal
  • Aldar and Mubadala acquire Masdar City Square

    17 September 2026

    Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and local developer Aldar have completed the acquisition of Masdar City Square at Masdar City, in a transaction valued at AED918m ($250m).

    The deal was executed through their joint venture established in 2024.

    Masdar City Square comprises more than 47,000 square metres (sq m) of net leasable area across seven office buildings.

    Completed in Q1 2026, the development is 99% occupied. Tenants include Taqa, the Department of Energy, Emirates College and the Mohamed Bin Zayed University of Artificial Intelligence.

    The transaction expands the joint venture’s real estate portfolio in Masdar City, which is now valued at AED4.7bn ($1.3bn).

    Masdar City is one of the region’s leading hubs for clean energy, artificial intelligence, advanced research and sustainable urban development.

    The joint venture acquired The Link project at Masdar City for AED654m ($178m) in April.

    Comprising about 32,000 sq m of net leasable area across five buildings, The Link is fully leased to a portfolio of major tenants, including Abu Dhabi Future Energy Company (Masdar) and the Mohamed Bin Zayed University of Artificial Intelligence.

    The asset includes Grade A, Leed Platinum office space, a net-zero-energy headquarters building, a multi-use hall and residential accommodation, supporting its position as a high-performing, integrated component of Masdar City.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19748241/main5814.png
    Yasir Iqbal
  • Dubai announces new 80km highway corridor

    16 September 2026

    Dubai has approved the construction of the new fourth corridor, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

    The corridor will extend 80 kilometres, from Al-Faya Road in Abu Dhabi to Al-Shanouf Road in Sharjah.

    It will include 12 lanes, 72 bridges and 17 tunnels.

    The project is expected to reduce travel times by up to 60% and serve more than 3.1 million people, while providing links to Al-Maktoum International airport and Etihad Rail.

    It will have the capacity to accommodate 24,000 vehicles per hour in each direction.

    The project will be delivered in two phases. The first phase, running from Al-Shanouf Road to Dubai-Al Ain Road, will be delivered at a cost of AED3.5bn ($953m).

    The second phase will stretch from Dubai-Al Ain Road to Al-Faya Road in Abu Dhabi.

    The scheme adds a fourth spine to a network that has long relied on three main corridors: the E11 (Sheikh Zayed Road/Al-Ittihad Road); the E311 (Sheikh Mohamed Bin Zayed Road) and the E611 (Emirates Road), which together carry more than 850,000 vehicles commuting between Dubai and the northern emirates daily.

    That concentration has made the route one of the country’s most congested, with peak-hour bottlenecks a persistent problem for residents. The new corridor is designed to divert a significant share of that traffic onto a higher-capacity route, rather than add pressure to the existing network.

    The project also aligns with the Dubai 2040 Urban Master Plan, which anticipates population growth to 5.8 million by 2040 and calls for the expansion of roads, railways, airports and ports to support that growth and reinforce Dubai’s position as a global trading hub. This is reflected in the corridor’s direct links to Al-Maktoum International airport and Etihad Rail.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19725878/main.jpeg
    Yasir Iqbal
  • Contractors submit Expo 2030 convention centre interest

    16 September 2026

     

    Register for MEED’s 14-day trial access 

    Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, received contractor interest on 14 September for a contract to design and build a convention centre in the site's Collaboration District.

    Construction is slated to begin in January 2027 and take 29 months. The development will cover a total gross external area of more than 28,000 square metres (sq m). The total programme area will be about 22,000 sq m and the gross floor area will be 17,000 sq m. The maximum height of the building will be 41.5 metres.

    The venue will be laid out across two levels, with a mezzanine, roof terraces and a 4,030 sq m basement, in addition to mechanical, electrical and plumbing and back-of-house spaces.

    Two flexible exhibition halls are planned, covering a combined 7,280 sq m, as well as 3,800 sq m of pre-function space, 650 sq m dedicated to meeting rooms and 2,200 sq m of outdoor exhibition space in the north and south plazas.

    The appointed main contractor will assume responsibility for packages including the early works substructure and the lead design consultant's deliverables, while carrying out the full scope of superstructure, above-ground waterproofing, external facades, masonry, base build and specialised fit-outs for VVIP, VIP and visitor areas.

    Further scope includes delivering comprehensive MEP services; vertical transportation; final infrastructure tie-points; public-realm hard and soft landscaping; testing, commissioning, handover documentation; and management of the defects liability period.

    The expression of interest notice was floated on 13 September.

    The unusually brief expression of interest deadline of just one day underscores a compressed procurement timeline.

    This accelerated tender and evaluation schedule signals that project organisers are operating under time pressure to secure contractors and maintain the tight schedule required ahead of the event's opening.

    ERC expects to award the formal contract by the end of this year and begin construction in January next year.

    The project is due for completion in early 2030, in time for the main event in October of that year.

    Site progress

    Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

    Earlier this month, MEED exclusively reported that ERC has tendered a contract to deliver the Souq areas within the expo site.

    These areas are divided into five precincts, with a total development area of about 300,000 sq m.

    In September, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.

    In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.

    The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle (EV) charging.

    These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

    That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems and EV charging stations.

    The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

    The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19716287/main.jpg
    Yasir Iqbal