Category: Business Segments

His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, reviewed the progress in construction of The Tower at Dubai Creek Harbour, the iconic observation tower that defines a new skyline for the nation.

His Highness was accompanied on the tour by Mohamed Alabbar, Chairman of Emaar Properties; HE Abdullah Al Habbai, Chairman of Dubai Holding, and other senior officials.

His Highness Sheikh Mohammed bin Rashid was briefed on the milestones already achieved including the completion of foundation work and the commencement of work on the anchorages for the stay cables that are an integral part of design and structural support of The Tower.

In October 2016, His Highness Sheikh Mohammed bin Rashid marked the ground-breaking of the tower, with the foundation work accomplished in a record time. More than 145 barrette piles have been laid to depths of over 72 metres to secure the super-tall structure. His Highness witnessed the trimming of the barrette piles and the preparation of the reinforcement couplers, ready to receive the first sub structure slab.

The barrette piles used for the foundation have been tested to a world record test load of 360 MN (36,000 tonnes), and the work was undertaken by foundation specialist, Soletanche Bachy. A cathodic protection system, similar to that used on the foundations of Burj Khalifa, is being completed to protect it from any corrosion risk.

Mohamed Alabbar said: “We are thankful to the guidance and support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, who inspires us to continuously push our boundaries. The Tower at Dubai Creek Harbour is our tribute to the nation, a new architectural marvel that will enhance our civic pride, and contribute to the economy by promoting the tourism sector. The spectacular tower will also frame a new skyline that adds to the cityscape set by Burj Khalifa.”

His Excellency Abdullah Al Habbai said: “The Tower at Dubai Creek Harbour stands for the positivity and hope that Dubai celebrates. It reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to establish the city as a hub for business and leisure, and welcome visitors from around the world. With this iconic development, Dubai is once again demonstrating its ability to develop first-of-its-kind projects that surprise the world.”

With work on the 19m Pile Cap commencing shortly, The Tower at Dubai Creek Harbour will witness a global team of professionals at work to create another global icon. Designed by Spanish/Swiss architect and engineer Santiago Calatrava Valls, The Tower will feature several observation decks that offer 360 degree views of the city and beyond. Among the highlights are The Pinnacle Room and VIP Observation Garden Decks that recreate the splendour of the ‘Hanging Gardens of Babylon,’ one of the Seven Wonders of the Ancient World.

The Tower adds incredible economic value to Dubai Creek Harbour where Emaar has unveiled exceptional residential projects including Creek Gate, Harbour Gate, The Cove, Dubai Creek Residences, Creekside 18, Harbour Views, and Creek Horizon, among others.

9HIJRI is a special tribute by The Dubai Mall to mark the Holy Month
This Holy Month of Ramadan, embark on a journey of enlightenment through the Golden Ages of Islam as The Dubai Mall brings 9HIJRI, a well-curated experience highlighting the contributions of Islamic scholars and master-craftsmen.

The month-long exhibition celebrates Islam’s contribution to the region’s civilisation with nine dedicated zones that pay tribute to the scholars and veterans, each highlighting a defining aspect of the region.

Discover the ‘House of Wisdom’ at the Knowledge Zone that brings together the inspiring views of scholars from across the Arab world, creating a veritable intellectual academy. The House of Wisdom documents the collective learning from rare manuscripts, books and studies by the region’s legendary names, opening doors to a new world of cultural understanding.

At the Film Zone, watch a specially hand-picked selection of short films by leading Arab and Muslim directors, each showcasing Arab talent. Do not miss the captivating short films on Islamic identity, culture and life.

The Literature Zone, as the name depicts, underlines the evolution of Arabic literature – through the Golden Ages in Baghdad to the poetry nights at Andalusian gardens. The rich history of modern Muslim and Arab literature assures a captivating experience with the best of regional story-telling and poetry recitals for adults and children. Alia Al Shamsi will showcase her e-books for children and read poetry while Omar Ghobash will regale audiences with his reading sessions.

The Science Zone assures an exploration into the world of astronomy, physics and chemistry through the history of Islam. Here, visitors can take part in a range of entertaining and educational activities. Further, Dubai Astronomy members will introduce Dubai Astronomy group, and display videos about the science, and visitors can use Google Cardboard or the Oculus with stargazing apps.

Dedicated to the design influences in the region, the Design Zone unravels the artistic brilliance of intricate geometric patterns, highlighting how Islamic craftsmen have turned geometry into an artform. Explore Islamic designs that showcase the traditional usage of light and geometry.

The Art Zone features an exhibition of Islamic handicraft and art. Here, visitors can take part in workshops on calligraphy, painting and ceramics to discover more about Islamic artistic traditions. The Fashion Zone highlights the exceptional works of regional and international designers, who offer unique styling advice, especially relevant for the season.

Venture into the Calligraphy Zone, a gallery of much-prized Islamic calligraphy work – classic and contemporary. Here, visitors can also try calligraphy using a virtual reality tool. The Numeric Zone presents the scientific genius of Al Khwarizmi, Al Kindi and Al Misri, who shaped the essence of mathematics and algebra.

From addition, subtraction, multiplication and division to extracting the root to the very concept of zero, the Zone – located right at the Grand Entrance of the mall – has an iconic art installation that honours Islam’s contribution to mathematics.

Visit The Dubai Mall this Holy Month to explore the greatest gift of all – the gift of knowledge – through an inspiring journey into the real heart of the Arab world.

The flagship asset of Emaar Malls (DFM: EMAARMALLS), 9HIJRI is a community-oriented event like no other to mark the Holy Month with the activations set across they key atriums of the mall.

What: 9HIJRI exhibition

Where: The Dubai Mall

Time: 10am to 3am, everyday throughout the Holy Month of Ramadan

Emaar brings its world-renowned The Dubai Mall experience to Turkey with a new shopping and lifestyle centre, architecturally inspired by IstanbulTop luxury brands of the world as well as brands from Turkey come together at Emaar Square Mall
Emaar Turkey, the country-subsidiary of Emaar Properties PJSC, has opened Emaar Square Mall, a world-class retail and leisure destination located in the heart of Emaar Square, an elegant master-planned development.

With its architecture inspired by İstanbul, one of the most beautiful cities in the world, Emaar Square Mall showcases some of the world’s leading retail, entertainment and gastronomy brands to assure visitors of a memorable experience.

A must-visit destination in İstanbul, Emaar Square Mall has several outlets of renowned brands from Turkey along with other global names, and is projected to be welcome 25 million visitors annually.

Currently, the mall’s retail mix includes 10 per cent luxury brands, which will be increased to 25 per cent by September. Additionally, the leisure attractions such as Emaar Aquarium & Underwater Zoo, FunLab and Turkish Village, will appeal to visitors of all age-groups, underlining Emaar Square Mall’s reputation as a family destination.

The stars of fashion at Emaar Square Mall

Among the top brands at Emaar Square Mall include Galeries Lafayette, and luxury brands such as Gucci, Cartier and Hermès that will offer a delightful shopping experience for visitors.

World-renowned automotive brand Mercedes introduces the ME Store concept to Turkey for the first time, while Turkish fashion giant Vakko operates one of its largest outlets in the country in Emaar Square Mall. The rich brand portfolio also includes high street brands such as Zara, LC Waikiki, Massimo Dutti, Victoria’s Secret, Mango and Atasay.

All the flavours of Istanbul

Emaar Square Mall’s Turkish Village will bring the spirit of the world’s oldest shopping centre, the Grand Bazaar as well as the dynamism of small markets from all over Istanbul at one destination. Local brands are also present in the Turkish Village celebrating the neighbourhood culture of Istanbul as well as offering a choice of delectable local cuisine.

Emaar Square Mall’s exclusive restaurants

In addition to a wide range traditional and modern cuisine as well as gourmet restaurants, gastronomy festivals will be held throughout the year offering perse culinary flavours to visitors. Huqqa, which combines delicacies of the world cuisine with Istanbul’s unique Bosphorus view, and Şamdan, one of the oldest and most famous restaurants of Istanbul, are showcased at Emaar Square Mall with their exclusive concepts.

Entertainment for everyone

Emaar Square Mall emphasises on entertainment along with retail and gastronomy to ensure that visitors have memorable experiences in every visit. Further, fountain shows, water features and open areas of the mall bring a new experience to the city.

Emaar Square Mall has a cineplex with a total capacity of 2,400; the cinema deploys 4DX technology, which engages all five senses. Emaar Aquarium & Underwater Zoo adds to the joy of visitors with over 20,000 aquatic animals of 200 different species. It is also home to one of the world’s largest crocodiles at a length of 5 metres and its mate, among other species never seen in Turkey before. Children can learn about ecology and the sustainability of marine life, while the conservation programme will focus on preserving some endangered species.

A calendar full of activities

Ateliers, kids’ events, workshops & theatre and also an art centre located in the heart of the mall welcome visitors with a rich events and activities calendar all-year round.

Emaar Properties is marking the spirit of togetherness with an inspiring experience at Dubai Creek Harbour. Set against unparalleled views of the Dubai skyline, ‘Ramadan Nights at RISE – Dubai Creek Harbour’ will transform into a unique dining experience, where families and friends can come together for Iftar and Suhour, while enjoying a host of cultural performances from regional talent.

Savour in the flavours of a sumptuous buffet, with an array of Arabian delights, accompanied by a selection of international dishes in an inspiring environment set by the ambient music of Khalil Ghadri, as he joins ‘Ramadan Nights at RISE – Dubai Creek Harbour’.

Throughout the Holy Month, visitors to ‘Ramadan Nights at RISE – Dubai Creek Harbour’ can also take part in a variety of workshops – from making Eid Cards and Ramadan gift hampers to learning how to create Islamic geometric patterns; book readings for children, board games for adults and curated pop-up store featuring home décor, accessories, gifts and fashion.

Enjoy the laid-back ambience and cultural delights of ‘Ramadan Nights at RISE – Dubai Creek Harbour.’ Join friends and family for a unique waterfront experience with some of the best views in Dubai, and delight in dining, shisha and entertainment.

With attentive service and exceptional cuisine, RISE – Dubai Creek Harbour brings ‘The Future of Living’ to Dubai this Holy Month, making of ‘Ramadan Nights at RISE – Dubai Creek Harbour’ a must-visit destination for the most memorable Ramadan evenings.

The picturesque, waterfront dining and festivities will continue from Iftar, through to Suhour, from sunset to 2am on weekdays, and sunset to 3am on weekends.

Location: Rise at Dubai Creek Harbour

Date: Throughout the Holy Month of Ramadan

Time: Sunset to 2am (Sun-Wed); Sunset – 3am (Thu-Sat)

Price: Iftar (AED 140) and Suhour (AED 125)

Q1 2017 revenue increases by 15% to AED 4.072 billion (US$ 1.109 billion)Recurring revenues from malls, hospitality, entertainment and leisure businesses at AED 1.592 billion (US$ 433 million), 39% of the total Group revenueRevenue from international operations grew by 62% to AED 806 million (US$ 219 million), 20% of total revenueDistributes AED 1.074 billion (US$292 million), equivalent to 15% of share capital, as cash dividend to shareholders for 2016
Dubai, UAE; May 14, 2017:Emaar Properties PJSC recorded a net profit of AED 1.384 billion (US$ 377 million) in the first quarter (January to March) 2017, an increase of 15 per cent over the same period last year at AED 1.205 billion (US$ 328 million).

Total revenue for Q1 2017 was AED 4.072 billion (US$ 1.109 billion), an increase of 15 per cent over Q1 2016 revenue of AED 3.529 billion (US$ 961 million).

Recurring revenues from the malls, hospitality, entertainment and leisure businesses of Emaar were AED 1.592 billion (US$ 433 million) in Q1 2017 contributing 39 per cent of the total Group revenue.

Emaar’s international operations recorded Q1 2017 revenue of AED 806 million (US$ 219 million), an increase of 62 per cent over Q1 2016 revenue of AED 499 million (US$ 136 million), accounting for 20 per cent of the total Group revenue.

At the Annual General Meeting of Emaar Properties, shareholders have approved to distribute a cash dividend of AED 1.074 billion (US$ 292 million), equivalent to 15 per cent of the share capital.

Focus on value creation

Mohamed Alabbar, Chairman of Emaar Properties, said that the positive results achieved by Emaar across its operations underlines the focus of the company on continued value creation for its stakeholders. “Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth. This is driven by our new customer-oriented digital strategy that helps optimise our resource use and enhance efficiency.”

He added: “We have seen an increase in property sales in Dubai, and we are on track with our construction milestones. Emaar’s performance underpins the positive economic environment of Dubai led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai.”

Strong property sales

Emaar recorded robust property sales of AED 6.049 billion (US$ 1.647 billion) during Q1 2017 in Dubai. This is 44 per cent higher than the value of property sales in Dubai during Q1 2016 at AED 4.194 billion (US$ 1.142 billion), and 115 per cent higher than the figures for Q4 2016 at AED 2.810 billion (US$ 765 million). The Group now has a backlog of AED 46.245 billion (US$ 12.591 billion) to be recognised as revenue in the next few years.

The property business in Dubai was highlighted by new residential launches in Downtown Dubai, Dubai Marina and joint venture projects under Dubai Hills Estate, Dubai Creek Harbour and Emaar South.

Emaar accomplished a key milestone with the completion of the pile foundations for the new global icon The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour. Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate, which now has green avenues, lakes, waterbodies and roads.

The new property launches in Q1 2017 includes Downtown Views II, located in the Zabeel area of Downtown Dubai, Vida Residences in Dubai Marina, Creek Gate and Harbour Gate in Dubai Creek Harbour and Golf Views apartments and Urbana III stacked townhouses in Emaar South.

Expanding malls and hospitality operations During Q1 2017, Emaar Malls (DFM: EMAARMALLS) recorded revenues of AED 836 million (US$ 228 million), similar to Q1 2016 revenue of AED 833 million (US$ 227 million).

Net profit from the malls business during Q1 2017 was AED 539 million (US$ 147 million), similar to Q1 2016 net profit of AED 529 million (US$ 144 million) and 19 per cent higher than Q4 2016 net profit of AED 452 million (US$ 123 million).

The shopping mall assets of Emaar Malls, including its flagship – The Dubai Mall – welcomed over 34 million visitors in Q1 2017, 10 per cent higher than Q1 2016. With a gross leasable area of about 6 million sq ft in Dubai, Emaar Malls is expanding The Dubai Mall’s Fashion Avenue by another 1 million sq ft built-up area this year. Additionally, The Dubai Mall is adding new retail and leisure attractions with the Boulevard, Fountain Views and Zabeel expansions.

Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of AED 756 million (US$ 206 million) during Q1 2017, an increase of 5 per cent over the same period last year at AED 722 million (US$ 197 million).

Emaar’s hospitality segment marked the launch of two new hotels in Q1 2017 including Address Boulevard, a city lifestyle resort under the portfolio of Address Hotels + Resorts, and Rove Healthcare City. A contemporary midscale brand, Rove Hotels are being developed as a joint venture with Meraas Holding with plans to roll out 10 hotels in Dubai by 2020.

The premium upscale The Address branded hotels under Emaar Hospitality Group recorded an average occupancy of 92 per cent during Q1 2017, higher than the industry average. Emaar is in the course of expanding its hospitality business with 26 upcoming projects in the UAE, Turkey, Egypt, Saudi Arabia and Bahrain.

With 190 million sq m of land bank in the UAE and key international markets, Emaar assets are valued at around AED 179 billion (US$ 49 billion).

At a height of over 220 metres, Sky Bridge has three main floors featuring 8 luxurious Sky Collection duplex units, and a 70-metre long infinity pool overlooking Burj Khalifa and The Dubai FountainThe 85-metre-long, 22-metre-high Sky Bridge has a maximum width of 30 metres, and is built with 4,500 tonnes of structural steelGlobal design teams, construction and engineering professionals worked to deliver a new landmark for the nation
Dubai, UAE; May 11, 2017: Dubai now has a new architectural landmark: Emaar Properties today accomplished the challenging engineering feat of designing, constructing and lifting an iconic Sky Bridge that links the new Address Sky View hotel with the Address Residences Sky View in Downtown Dubai.

Rising at a height of over 220 metres, the 85-metre-long Sky Bridge, with a height of 22 metres and maximum width of 30 metres, has three storeys and will feature eight units of luxurious Sky Collection Duplexes, a 70-metre-long infinity pool that overlooks Burj Khalifa and The Dubai Fountain, and other amenities.

Billed to be a new touristic attraction that also adds economic value, the Sky Bridge is fabricated using 4,500 tonnes of structural steel, and was lifted in position using Strand Jacking Technology, customised for the project. A team of global experts from five different entities worked on the project that was completed in around 365 days by over 300 professionals and skilled workers.

Mohamed Alabbar, Chairman of Emaar Properties, said: “Building and lifting the Sky Bridge is the result of the hard work and collaboration of some of the best international experts in the field, who addressed various challenges through their innovative and creative approach. They have accomplished a remarkable engineering feat that will serve as a referral point in modern construction. Sky Bridge is an added value to Downtown Dubai, and contributes to the pride of our nation.”

The unique Sky Bridge addressed several design challenges given the extensive loads of steel and concrete, as well as the loads related to the infinity pool, pool deck and façade, it needed. The ambient temperature difference was also considered during the design stage to ensure that it suits the region’s climate. A steel frame with three levels was designed to hold the huge loads transferred to the core walls of the two towers it links.

To address the construction challenges, the main body of the bridge was pided into five elements, each weighing over 400 tonnes each. The fifth element is the MEGA truss in the middle that has a total weight of over 1,500 tonnes. High capacity cranes, not commonly used in the region, were deployed to lift the huge weights. Special high-capacity hydraulic jacks were also imported from Switzerland.

Another challenge was designing eight custom-made Boom and Derrick systems that had to be assembled at level 50 – about 200 meters high – on both towers. Laser technology was deployed for precise leveling.

To execute the seamless lifting of the Sky Bridge, each element was assembled on ground. They were then lifted using the Strand Jacking Technology over a period of four months from November 2016 to February 2017. The MEGA truss, the heaviest component, was lifted to the height of 220 metres using the high-capacity hydraulic jacks and cables.

The Sky Bridge has undergone extensive fire proofing and other safety and security tests. Each component was elaborately tested to ensure the highest standards of quality and durability. The infinity pool was designed taking into consideration the maximum comfort level of residents.

Given the proximity to Burj Khalifa Metro Station and the Metro Link, elaborate safety measures were put in place, and a clearly structured logistics plan was followed through close cooperation with the government authorities.

The super-lifting of the Sky Bridge also required tremendous planning, team work and technological perfection, especially given wind speeds of up to 80 km/hour. Each element had to be precisely lifted and erected while addressing all the required safety considerations.

A hotel, residential and serviced apartment complex linked directly to The Dubai Mall Metro station through a travellator, the 60-floor Address Sky View towers are 260 meters high, and offers spectacular 360 degree views of Downtown Dubai and the city. The launch of homes and serviced residences in the development has gained overwhelming customer response.

Designed by Skidmore, Owings and Merrill, the architects of Burj Khalifa, Address Sky View has 169 luxurious hotel rooms on 12 levels with amenities including restaurants, lounges, a world-class event venue, meeting rooms, three pools including a rooftop pool and a spa. Address Residences Sky View has 551 exceptional serviced residences that are fully furnished with floor-to-ceiling windows, offering stunning views.

A dedicated lobby for Address Residences Sky View welcomes residents and guests with warmth and elegance, as distinct materials and textures, including wood, glass, stone and beautiful leathers with soft lighting, evoke a sense of luxury. For more details on Address Sky View, log on to: www.emaar.com

For footage on the Sky Bridge lifting, please click here.

RENOWNED GLOBAL EXPERT GEORGE BLANKENSHIP SHARES HIS EXPERIENCE WITH EMAAR EXECUTIVES ON DELIVERING INNOVATIVE CUSTOMER EXPERIENCE
‘Emaar Speaker Series’ is a monthly series of guest lectures by prominent business leaders, experts and futurists. The series, organised by Emaar Properties, is an integral part of Emaar’s transformational journey focused on enhancing customer excellence, delivering innovation with a customer-first mindset and achieving sustained value creation for its shareholders and all stakeholders.

To date, Emaar has hosted high profile speakers including Salim Ismail the best-selling author of Exponential Organizations, Jimmy Allen the co-leader of Bain & Company’s strategy practice, Dr. Parag Khanna a leading international relations expert and global strategist and Tunc Cerrahoglu, a former senior executive from Anheuser-Busch InBev.

Emaar marked its fifth ‘Emaar Speaker Series’ event with a keynote speech by George Blankenship. Blankenship is a former Tesla, Apple and GAP Inc. executive, who has worked alongside the world’s most innovative business leaders like Elon Musk and Steve Jobs to deliver retail stores and experiences that delight the customer and generate customer loyalty.

Blankenship’s keynote speech focused on the key success factors in customer service, that are demonstrated by the world’s most successful and customer-obsessed companies. During his keynote, Blankenship highlighted real-world case studies of how customer innovation, digital transformation and employee empowerment can enhance customer experience and generate shareholder value.

Having formulated and executed retail growth strategies as a senior real estate executive, Blankenship shared insights which underlined customer focus as a key imperative for Emaar.

The event was attended by over 100 Emaar executives, who gained invaluable insights on taking Emaar’s customer service standards to the next level.

The Speaker Series is an investment by Emaar in its executives and reflects the management’s commitment to nurture its talents and develop the knowledge and skills of its employees. Emaar plans to further broaden the platform of learning for its executives and to engage broader audiences through its social platforms.

Address Hotels + Resorts, Vida Hotels and Resorts, Palace Downtown and Manzil Downtown Apps tailored on their guest profiles & preferences are now live; Rove Hotels App to go live shortlyIntegrated with backend systems to offer management teams crucial real time data for enhancing guest experience
In a never-before example of digital transformation in the hospitality industry, Emaar Hospitality Group has set an impressive first with the launch of five native Applications (Apps) that enhance the digital lifestyle experiences for guests.

The first-of-its-kind in the world of hospitality, the Apps stand apart for their focus on individual hotels under the Group as opposed to conventional industry practices, and assure end-to-end digital connectivity with the hotel for guests over their mobile phone.

The introduction of the new Apps is in line with the new digital strategy of Emaar to drive enhanced customer experiences. The ‘mobile first’ approach of Emaar Hospitality Group, combined with its ambition to be an industry leader in using technology to enhance guest experience, is set to be an industry game changer by delivering an innovative digital experience for guests.

The Apps are part of a series of other digital initiatives being implemented by Emaar Hospitality Group. They draw on the tremendous potential offered by the increased internet and smartphone penetration in the region. It is also aligned with the aspirations of the region’s 200 million youth population, who form the new generation of travellers and entrepreneurs.

Emaar Hospitality Group selected Go Find It Technologies SA as its partner in developing the Apps. Marking the first phase of the digital transformation across the Group, the Apps are being developed for Address Hotels + Resorts, Vida Hotels and Resorts, Rove Hotels, Palace Downtown and Manzil Downtown, taking into consideration the unique guest profiles and preferences of the hotel brands and individual hotels.

Address Hotels + Resorts, Vida Hotels and Resorts, Palace Downtown and Manzil Downtown Apps have gone live with the Rove Hotels App to go live shortly.

Olivier Harnisch, Chief Executive Officer, Emaar Hospitality Group, said: “This is truly historic as we pioneer a new digital trend for the hospitality sector. Now our guests have all the connectivity and convenience they need for a memorable experience at our hotels right at their fingertips.

“The five Apps are industry-defining, as they take into consideration the unique customer requirements of our three hotel brands. They will enable our guests to access a host of services on their mobile phones, while also providing us with real time data that will help us deliver value-added services to meet and exceed their expectations.”

The five Apps enjoy superior functionality. They are integrated with the hotels’ reservation systems, offer guests access to city guides, are social media friendly and push relevant information such as an invitation to join the ‘U By Emaar’ loyalty programme, special offers, relevant event information and much more.

The content offered within the Apps includes professionally produced City Guides highlighting what is happening in and around the city on a daily basis. This regularly updated information will account for around 30 per cent of the content within each App.

Additionally, individual hotels will create their own content to engage with guests in a meaningful way while making it easier for marketers to highlight relevant events as well as special offers across stays, dining, spa and more.

Address Hotels + Resorts, Vida Hotels and Resorts, Palace Downtown, and Manzil Downtown Apps on iOS and Android are available for download on the App Store and Google Play; the Rove Hotels App will be available soon.

Founder & Chairman of Emaar Properties shares the company’s success story with students

Mohamed Alabbar, Founder and Chairman of Emaar Properties, shared the success story of Emaar with over 80 students at the prestigious Harvard Business School in Boston.

Harvard Business School Senior Lecturer Sid Yog selected Emaar as the subject of a case study titled Emaar: The Center of Tomorrow, Today for his second-year elective MBA course Investing in Emerging Markets.

The case study on Emaar was conducted by Yog and Research Associates Esel Cekin and Marc Homsy, following an intensive review of the company’s operations and detailed interviews with the senior management.

The case evaluates how Emaar addressed the challenges of the global financial crisis and the tough measures that Alabbar put in place to steer the company to become “the only real estate developer in Dubai to have continuous positive returns during the global financial crisis.” It also recognises the transformational impact that Emaar has had on the physical landscape of Dubai.

During his visit to the Harvard Business School campus, Alabbar presented Emaar’s growth story. In less than two decades of operation, Emaar has become the leading player in the Middle East’s property development industry and has delivered highly-demanded residential communities, iconic shopping malls and hotel developments.

Alabbar said: “Our founding vision was to shape the future through our pioneering model of integrated master-planned communities. Today, we have defined the future of cities through our world-class developments that not only deliver a sense of belonging to residents but also catalyse local economies. We have always focused on long-term value creation for our stakeholders and we consistently deliver on our promise.”

Alabbar shared his strategic outlook for the company and highlighted its digital transformation. “This is the era of digital transformation for Emaar. Across all aspects of our operations we are leveraging the potential of digital technologies to enhance efficiency, productivity and customer service standards. Today’s era is defined by how agile, flexible and responsive we are not only to the demands of customers but also to a shifting market landscape.”

Alabbar also presented e25, a new start-up initiative that he has launched within Emaar. e25 is a team of 25 under 25 year olds that will bring a new engine of ideas and innovations to the company and shape its future leaders.

Emaar Hospitality Group becomes the first international hotel operating company to offer incentive-fee-only management agreements, creating mutually beneficial opportunities for owners and operatorsThe new contractual model removes the customary base management fee and links the operator’s fee earnings exclusively to generated profit rather than revenue
Emaar Hospitality Group, the hospitality and leisure business of Emaar Properties PJSC, has introduced an industry-defining model for hotel management agreements.

This is a marked departure from the prevalent fee structure in the hospitality sector, where hotel operators receive a base fee as a percentage of gross revenue and an incentive fee based on the gross operating profit.

The alternative model offered by Emaar Hospitality Group is based only on an incentive fee, which is driven by the operator’s ability to generate profits rather than revenues.

In an industry where the majority of global fees earned are linked to revenue, the new model aligns the interests of the owner and operator as it focuses on profit generation, replacing the emphasis on top-line results with a focus on bottom line achievement.

Olivier Harnisch, Chief Executive Officer of Emaar Hospitality Group, said the new management fee model sets an industry benchmark. “There will be greater responsibility on the operator to drive operating profits that will create sustained and long-term value for hotel owners, unlike under the prevailing model, where the operator earns a base management fee regardless of operating expenses.

“The distribution landscape in the hotel industry has changed dramatically over the past years and we feel that profit is a more powerful indicator of operator performance than revenue. We are leveraging our experience both as a hotel owner and operator in developing the new model. With ten years of history in developing and operating three industry leading hotel brands, we understand the operations side of hotels, and as part of the publicly listed Emaar Properties, we are also focused on continued value creation,” said Harnisch.

“The new model brings two core strengths: One, it enhances owner-operator relationships with greater onus on the operator to drive profitability. Two, it creates lasting value for hotel owners, even in the face of challenging economic conditions as the operator will focus on minimising operating expenses and strengthening profits,” explained Harnisch.

Emaar Hospitality Group has already signed several management contracts to operate hotels in the UAE, Saudi Arabia, Bahrain, Turkey and Egypt for other developers and hotel owners. The new model is offered in addition to standard model and gives the hotel owners the opportunity to choose between the two.

“With the new model, we are looking to expand our footprint in the UAE and other international markets to operate hotels with a clear commitment on our side to enhance operating profits. We have evaluated the market landscape in preparing the new model, and we see it as an ideal fit to all geographies,” said Harnisch.

Globally, the hospitality sector is relooking at owner-operator contracts with consideration given to how profits and revenues are apportioned. A study by CharlesRussselSpeechlys* observes that with the base fee and share of profit structure, owner and operator risk and reward are totally unaligned, “as the internal rate of return that operators generate from revenue-based fee was normally sufficient to make the contract profitable for the operator” irrespective of the hotel’s profitability.

Unlike many international hotel operating companies that are shedding their property and focusing on hotel management agreements, Emaar Hospitality Group is not only expanding its management contract expertise but also strengthening its own development pipeline with a total of 20 hotel projects – in Dubai and Fujairah – as well as in international markets including Egypt, Bahrain, Turkey and Saudi Arabia.