Gallery Suites Vacation Rentals LLC, a subsidiary of the UAE-based IBC Group, announced that it has joined hands with OYO Hotels and Homes, the world’s fastest-growing chain of hotels, homes & living spaces, to furnish and manage a portfolio of 10,000 elite properties in Dubai. The agreement will result in a portfolio of premier and uniquely furnished holiday homes, to address the growing demand for exceptional short-term rental experiences in the Emirati City.
According to a report released by Skift Research, the cumulative bookings market for short-term rentals will rise to an estimated $115 billion in 2019, up 7% from about $107 billion in 2018. Gallery Suites and OYO seek to emerge as the preferred choice of accommodation for travellers coming to Dubai. The properties being furnished and managed by the partnership are focused within locations rated ‘high’ in the ‘occupancy heat map’ used to illustrate demand, in the recent ‘Dubai Holiday Homes Market Review 2019’ report released by Knight Frank – including the Dubai Marina, Palm Jumeirah and other exclusive addresses in the city.
During the upcoming Expo 2020 event, Dubai is expected to host 25 million visitors from all across the world. A significant section of these arrivals will be cosmopolitan and sophisticated travellers who value refined and cultivated experiences. This partnership between Gallery Suites and OYO seeks to present this segment with singular accommodation options that enchant and delight.
A complementary partnership
Gallery Suites Vacation Rentals LLC is part of the highly regarded IBC Group, which is backed by global banking and finance leader Khurram Shroff, who was featured in the prestigious list of the “Top100 Most Powerful and Influential Muslims in Great Britain and the World” by Power100. The company will bring its comprehensive understanding of the select and exclusive segment of the Dubai short term rental market to the table. As part of the deal announced today, the IBC Group will retain ownership of the properties, leasing them to Gallery Suites to furnish and operate under permits issued to it. In turn, OYO Hotels and Homes would be responsible for operating these properties by bringing in its hospitality expertise, housekeeping skills and hassle-free check-in and check-out facilities while ensuring a high-quality experience for the discerning guests looking for unique experiences.
Today, OYO Hotels and Homes hosts guests from around the world in over 23,000 hotels and over 1 million rooms (hotels and homes), and more than 125,000-holiday homes, adding over 80,000 rooms every month, globally. With OYO Hotels, over tens of millions of customers have access to an ample supply of standardized and trusted accommodation offerings at extraordinarily affordable and predictable prices. Every night almost 500,000 heads rest on a pillow in OYO, a testament to the impact the company is creating across the globe. As a part of this partnership, OYO will introduce its revenue management expertise to ensure that these beautiful holiday homes are available to travellers at the optimal price point.
In 2010, the five largest short-term rental companies were responsible for a mere 4% of bookings in the global short-term rental market. In less than a decade, these five leaders will be responsible for an estimated 73% of such arrangements by the end of 2019. Gallery Suites and OYO aim to tap into this burgeoning short-term rental market and replicate its global success within Dubai.
On how this growth can be contextualized within Dubai’s holiday home market, Khurram Shroff quoted insights from a recent Knight Frank report. “Dubai’s holiday home market accounts for 2.0% of Dubai’s total households, which is the highest proportion of all other key global hub cities. Active short-term rentals currently listed in the city number 10,766, which represents growth exceeding 160%, since 2016. ”, said Shroff.
While the approach of the Expo 2020 event is occupying considerable attention within the hospitality sector, the concerted effort to diversify Dubai’s economy will generate a sustained demand over the long-term as well. The Dubai administration’s active patronage of innovative technologies and startups, its infrastructure development initiatives, and the easing of regulatory barriers are integrating the city with the global economy to an unprecedented extent. The emergence of Dubai as a globally acknowledged hub for trade, logistics, tourism and finance is set to define the city’s economic course in the coming years.
According to Pranav Mehta, Country Head – OYO UAE, the venture is an opportunity for OYO and Gallery Suites to grow together. “We at OYO, are keen to deliver quality experience to travellers coming to UAE and this partnership with the IBC Group is a step forward in this direction. The unique approach that The IBC Group and Gallery Suites are taking in furnishing this portfolio of properties, as well as the scale of the venture, represents an exciting possibility for collaboration between our two companies,’’ Pranav added.
Delivering affordable luxury & inspirational living at an opportune time
The alliance between the two heavyweights comes at an opportune time. Globally, travellers are increasingly seeking out the ‘home away from home’ experience that short-term leasing offers, while aspiring to affordable luxury. At the same time, the Dubai Expo 2020 is presenting growing opportunities for the travel and tourism industry. Dubai’s demand for this alternative to traditional hotels is only expected to rise further as it continues to grow as a leading regional and global tourism destination, as well as a commercial hub that routinely draws business travellers by the millions annually. The partnership aims to offer a rich pool of high-quality holiday homes, in high-price locations, at affordable rates, to the international travelers visiting Dubai.
