• Jumeirah sticks to target of 60 by 2012

Jumeirah, the luxury hotel group that is owned by the Dubai government, has 19 hotels under development and intends to progress its global rollout to hit 60 hotels by 2012.

Currently the group manages 11 hotels but had signed five new hotels in the first two weeks of October despite the global financial crisis.

The company has in total recently announced eight new hotels projects – in Indonesia, Maldives, Bahrain, Oman, Kuwait, China, Scotland and the US Virgin Islands. These hotels are expected to open over the next three years.

In Glasgow, the plan is to open 160 rooms and 85 serviced apartments in a 26-storery development in Argyle Street. It will be the fifth hotel in Europe and the first in the UK outside of London.

 

HA Perspective: Jumeirah's bullishness looks brave in the face of current economic conditions and, more importantly given where it obtains its finances, the falling price of oil.

Hotel development funded by oil rich countries has typically been seen as vulnerable as soon as oil drops below $60 a barrel. We are just about there.

The future looks challenging for Dubai given high debts on its existing property projects, the falling oil price and the prospect of what little oil it has left running out soon.

Whether building "super-luxury" hotels in secondary locations like Glasgow will help this situation remains to be seen.

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