The Sharjah Investment and Development Authority, better known as Shurooq, plans to open four new hotels in the next two years as part of its expansion plans in the emirate.
The new boutique hotels will be in Khorfakkan, Kalba and near the Sharjah safari project, Ahmed Al Qaseer, chief executive of Shurooq, told The National.
“There is excellent demand, that’s why we are expanding,” he said on the sidelines of the Future Hospitality Summit in Abu Dhabi on Wednesday.
One hotel in Khorfakkan is expected to begin operating this year, while two will be launched next year and another linked to Sharjah Safari is slated to open in the first quarter of 2025.
“We are looking for tourists who are interested in experiences, in terms of food, in terms of activities,” Mr Al Qaseer said.
“We are trying to expand to reach international tourists.”
He did not divulge the planned investment in the expansion but said the number of hotel rooms under Shurooq's portfolio will surge to more than 300 after the opening of the new properties.
The UAE is diversifying its economy away from oil and tourism is a key sector targeted for growth in this transition.
Last year, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced a national tourism strategy that is intended to attract 40 million hotel guests by 2031.
Authorities are also aiming to push the tourism sector's contribution to gross domestic product to Dh450 billion ($122.5 billion) by 203, while attracting Dh100 billion in tourism investment to the UAE.
“Our hotels are achieving the highest ADRs (average daily rate) in Sharjah,” Mr Qaseer said. “Occupancy levels were above 75 per cent last year. This year we are expecting to do better than last year.”
Shurooq’s hotels have been receiving a mix of domestic as well as international tourists from Europe and Asia and “numbers are back to pre-Covid levels”, he said.
Shurooq also aims to double room capacity at some of its properties in Sharjah amid higher demand from tourists, he added.
Hotels in the emirate received 467,775 guests in the first quarter of this year, up 33 per cent compared to the same period last year, figures compiled by the Sharjah Commerce and Tourism Development Authority show.
The total revenue recorded by hotels during the period jumped 26 per cent annually to Dh190 million with RevPar (revenue per available room), rising 5 per cent to Dh177 and ADR (average daily rate) by 13 per cent to Dh252.
Russia was the top source market for Sharjah during the period, followed by Oman, India, the UAE and Saudi Arabia, according to official data.
Sharjah Airport handled more than seven million passengers in the first half of 2023, up 24.4 per cent from the same period last year, amid growth in airline customer numbers and a surge in travel demand, the Sharjah Airport Authority said in July.
