Dubai's first easyHotel takes shape

Dubai's first easyHotel takes shape
Property news
Tuesday, 05 June 2007
Based on a model already launched in Europe, easyHotel.com is set to target short-stay customers, and is always built in an international city centre. The concept promises safe, clean and private rooms, and assumes customers will accept less space for a better price. Room payment will only be possible via credit card, and to encourage advance bookings, early bird discounts are standard, as are savings for off-peak periods.

Dubai Al Karama is the latest initiative of easyGroup Chairman and Founder Sir Stelios Hajr-Ionnaou. The six-storey budget hotel, which will be ready in 2008, is part of the easyGroup brand. Through sales of shares, licensing, and franchising arrangements, the group today operates in 17 industries, including travel, leisure, telecoms and personal finance.

Sir Stelios, who was knighted in 2006 for services to entrepreneurship, is to date best known for easyJet, a low-cost carrier he launched in Europe in 1995. Dubai’s first easyHotel.com property is one of six planned for the Emirate. Developer Istithmar Hotels, which has the master franchise for easyHotel.com in the Middle East, North Africa, lndia and Pakistan, is set to build 38 easyHotel.com properties over the next five years. Located in 17 countries, the value of the portfolio will exceed $400 million.

The model will offer guests a basic room to which extras can be added for a fee. Joe Sita, CEO of Istithmar Hotels, predicts that at today’s rates the rooms will cost between Dhs250 ($68) and Dhs300 ($82) a night. He is confident the model will work because of what he says is a lack of diversity in the marketplace. “Last year, Dubai enjoyed 85 per cent occupancy for rooms over $200 a night. You'd struggle to find a brand not already represented and this demonstrates that there is not enough diversity in product. This is why we have a great opportunity.”

More information: www.easyhotel.com