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DUBAI’S HOLIDAY HOME MARKETSeptember 2019

HOW THE PEER-TO-PEER SHARING ECONOMY IS SHAPING THE HOSPITALITY SECTOR

To date, tens of millions of travelers have chosen Airbnb to experience cities not as

tourists, but as locals.

74%of Airbnb are

properties outside the main hotel

districts

91%of travelers want to “live like a local” 79%

of travelers want to explore a specific neighbourhood

81%of hosts share the home in

which they live

DUBAI’S HOLIDAY HOME MARKET

Airbnb©

Airbnb©

To date, tens of millions of travelers have chosen Airbnb to experience cities not as

tourists, but as locals.

74%of Airbnb are

properties outside the main hotel

districts

91%of travelers want to “live like a local” 79%

of travelers want to explore a specific neighbourhood

81%of hosts share the home in

which they live

DUBAI’S HOLIDAY HOME MARKET

JUMEIRAHISLANDS

DUBAI MARINA

MEDIA CITY

JUMEIRAH BEACHRESIDENCE

AL SUFOUH

PALM JUMEIRAH

AL BARSHA

AL QUOZINDUSTRIAL

AL QUOZ

NAD AL SHEBA 1

AL BARARI

ARABIAN RANCHES

DUBAI SPORTSCITY

REMRAAM

UMM NAHAD

MOTOR CITY

CITY OF ARABIA

THE VILLA

DUBAI SILICONOASIS

ACADEMICCITY

INTERNATIONALCITY

AL WARQA 1

JUMEIRAHVILLAGE CIRCLE

EMIRATES HILLS JEBEL ALIVILLAGE

DUBAI INVESTMENT

PARK

JUMEIRAH

WORLD TRADE CENTRE

BUR DUBAI

DEIRA

AL KARAMA

DUBAI INTERNATIONAL

AIRPORT

UMM RAMOOL

RAS AL KHOR

RAS AL KHOR INDUSTRIAL

AREANAD AL SHEBA

DUBAI FESTIVALCITY

AL RASHIDIYA

MIRDIF

AL TWAR

GARHOUD

JUMEIRAH LAKES TOWERS

Supply (2016)

Highest concentration

in hotel districts

DUBAI’S HOLIDAY HOME MARKET

JUMEIRAHISLANDS

DUBAI MARINA

MEDIA CITY

JUMEIRAH BEACHRESIDENCE

AL SUFOUH

PALM JUMEIRAH

AL BARSHA

AL QUOZINDUSTRIAL

AL QUOZ

NAD AL SHEBA 1

AL BARARI

ARABIAN RANCHES

DUBAI SPORTSCITY

REMRAAM

UMM NAHAD

MOTOR CITY

CITY OF ARABIA

THE VILLA

DUBAI SILICONOASIS

ACADEMICCITY

INTERNATIONALCITY

AL WARQA 1

JUMEIRAHVILLAGE CIRCLE

EMIRATES HILLS JEBEL ALIVILLAGE

DUBAI INVESTMENT

PARK

JUMEIRAH

WORLD TRADE CENTRE

BUR DUBAI

DEIRA

AL KARAMA

DUBAI INTERNATIONAL

AIRPORT

UMM RAMOOL

RAS AL KHOR

RAS AL KHOR INDUSTRIAL

AREANAD AL SHEBA

DUBAI FESTIVALCITY

AL RASHIDIYA

MIRDIF

AL TWAR

GARHOUD

JUMEIRAH LAKES TOWERS

Higher proportion of individuals

seeking daily contracts

Higher proportion of individuals

seeking monthly contracts

DUBAI’S HOLIDAY HOME MARKET

Supply (2016)

Spreading to Secondary

Areas

DUBAI’S HOLIDAY HOME MARKET

Supply (2018)

DUBAI’S HOLIDAY HOME MARKET

ADR Heat Map

DUBAI’S HOLIDAY HOME MARKETDUBAI’S HOLIDAY HOME MARKET

Occupancy Heat Map

13 %of total hotel supply

1 %of total hotel supply

DUBAI’S HOLIDAY HOME MARKET

The Evolution of Holiday Home Supply

DUBAI’S HOLIDAY HOME MARKET

SINGAPORE0.4%

12%

HONG KONG0.1%

4%

LONDON1%

40%

DUBAI2%

13%

PARIS1%

34%

Airbnb % Residential

Airbnb % Hotel Rooms

Regional Supply

NEW YORK1%

32%

SYDNEY1%

29%

DUBAI’S HOLIDAY HOME MARKET

DUBAI’S HOLIDAY HOME MARKET

Private Room

Shared Room

Entire Apartment

Composition of Supply

DUBAI’S HOLIDAY HOME MARKETDUBAI’S HOLIDAY HOME MARKET

Kitchen WiFi Washer/Dryer Pool Gym Free Parking Instant Booking Hair Dryer

95%

95%

90%

82%

73%

72%

55%

51%

DUBAI’S HOLIDAY HOME MARKET

Common Facilities

359…average response time

DUBAI’S HOLIDAY HOME MARKET

Point of Differential

Source: AirDNA, STR Global, Knight Frank Research

Performance convergence during periods of low demand

Large differential between hotel and holiday home RevPAR

Larger holiday homes starting to outperform

hotel market performance

Hotels always outperform studios and 1 BRs

DUBAI’S HOLIDAY HOME MARKET

RevPAR Performance

More affordable hotels

Leisure oriented hotels

Hotels with fewer facilities

Unbranded hotels

DUBAI’S HOLIDAY HOME MARKET

Who is Most Severely Impacted

Main hotel districts such as Downtown, Palm Jumeirah, Dubai Marina and JBR

Serviced apartment sector targeting long stay guests downtown

Highly seasonal submarkets that cannot yield as effectively during peak periods

All hotels during “low” season

DUBAI’S HOLIDAY HOME MARKET

Changing Landscape

Adlène Djekiref, MEA Hotels & Serviced

Apartments Regional Manager , AirBnb

Reem Al Khatib, Managing Director,

GuestReady

Paul Mallee, Co-Founder and

Managing Director, Maison Privee

DUBAI’S HOLIDAY HOME MARKET

Expert Opinions…

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