The UAE hotel sector has been increasingly overestimating the market demand over the past few years and as such has been suffering from an oversupply of hotel keys.
The Covid-19 pandemic has nothing but accelerated the deterioration of market conditions which was expected regardless of virus, only a bit later. For the market to reach equilibrium and recover the decline in hotel rates and occupancies, it is no secret that future supply should be carefully studied. Repurposing of hotel assets to better address the actual current and future demand has also been a major topic of discussion among industry experts.
We at Grant Thornton UAE have been part of these discussions and are hereby summarizing our views on the repurposing of hotel assets to residential or long-stay properties.