Starwood signs four Dubai hotels with Dubai properties

US-based hotel chain Starwood has signed an agreement with property developer Dubai Properties to open four hotels in Dubai under its mid-scale brands Aloft and Element. The hotels, which are set to open in 2018, will feature 816 rooms altogether, the company said in a statement on Tuesday.

Dubai’s International Media Production Zone (IMPZ) will see the opening of one of the three Aloft-braded hotels, as well as the Element property. The other two Aloft hotels will open in Dubai Studio City and Dubai Biotechnology & Research Park (DuBiotech).

Michael Wale, president of Starwood for Europe, Africa and Middle East in the statement said these hotels will meet Dubai’s demand for mid-scale hotels in both urban and industrial areas.

Dubai is focusing on developing mid-scale hotels by 2020, when 20 million visitors are expected to arrive in the emirate.

“The hotels under the Aloft and Element brands will offer two new concepts to the existing mid-market category in the emirate, which will emerge as a vital segment in the run to Expo-2020,” stated Dubai Properties chief executive Naaman Atallah.

Peter Goddard, managing director of TRI Consulting, said that there is a gap in the Dubai market for mid-market hotels.

“Dubai has a relatively smaller proportion of midmarket hotels compared to the overall market size and the five star segment. There is a significant market gap for international quality two, three and four star hotels in the city,” he said.

Starwood also plans to open an Aloft hotel in Dubai World Central in 2018 and another near Dubai International Airport. An Element-branded property is set for a 2019 opening. Two more properties under the same brands are due to open in 2018 near Dubai Maritime City.

Starwood expects Aloft hotels to quadruple in the Middle East by 2019.

The company operates 51 hotels and resorts across the Middle East under eight of its 10 brands, including The Luxury Collection, St. Regis, Sheraton, Westin, W Hotels, Le Meridien, Four Points by Sheraton and Aloft. It plans to double its portfolio in the region over the next five years.