Dubai’s Jumeirah Group plans more acquisitions amid global expansion

The company does not plan to list on the stock market, chief executive says at Arabian Travel Market

Jumeirah Group chief executive Katerina Giannouka says the company is on the lookout for suitable assets in big European cities. Pawan Singh / The National

Dubai's Jumeirah Group plans more hotel-chain acquisitions in Europe and the US as part of its international expansion, its chief executive has said.

The company is currently on the lookout for “suitable assets” in big European cities, Katerina Giannouka told reporters during a media round-table on Monday.

“We're also keenly looking at the US … we're currently in conversation with many brokers around the world,” she said.

“It's about finding the right destination where ultra-luxury travellers want to be and also the right opportunities to invest in — either to reposition assets or to take over operating assets in those regions.”

The group, the flagship hospitality business of Dubai Holding, is a diversified global investment company with an asset portfolio worth Dh130 billion ($35.4 billion).

It has operations in 13 countries and employs more than 20,000 people.

Earlier this year, the company acquired Le Richemond hotel in Geneva, its first property purchase in Switzerland.

The Geneva property is the group's fifth in Europe, joining the Carlton Tower Jumeirah and Jumeirah Lowndes Hotel in London, the Capri Palace Jumeirah in Italy and the Jumeirah Port Soller Hotel & Spa in Mallorca, Spain.

Ms Giannouka said that the company could use third-party debt if it is at “the right price”. However, she did not reveal any additional details.

The group has no plans to list on the stock market and its five-year strategic plan is expected to determine its capital requirements.

The global hospitality industry has made a strong rebound from the impact of the Covid-19 pandemic as travel resumes worldwide.

The industry recorded “substantial levels of performance recovery” around the world at the end of 2022, with no signs of a significant slowdown in demand, according to hotel analytics provider STR.

This was despite rising inflation, record-high travel prices, flight disruptions and understaffed hotels, it said in a January report.

After a “strong” 2022, the company is on track to meet its financial targets this year, Ms Giannouka said, while declining to reveal specific metrics.

However, the group has witnessed a “softening” in average room rates in Dubai, which is consistent with the broader trends in the emirate’s hospitality sector, she said.

“Overall, we as a business are ahead of 2019, so the pandemic is truly behind us,” Ms Giannouka said.

Despite the company's international pivot, the Jumeirah Group is open to more opportunities in Dubai and the GCC region.

The company, which is set to open its first hotel in Saudi Arabia this year, expects the kingdom to be a key market, Ms Giannouka said.

Saudi Arabia, which is looking to diversify away from oil exports, aims to attract 100 million visitors annually by 2030.

The country plans to add 315,000 new hotel rooms with an estimated development cost of $37.8 billion by the end of the decade, according to a Knight Frank report.

The planned additions will take the total stock to about 450,000 hotel rooms, with giga-projects such as the futuristic city of Neom leading the supply pipeline, the report said.

“We'll continue to look at refining our portfolio and growing it, [but] the focus is going to be on growth internationally,” Ms Giannouka said.