The Hospitality Boom: Investment Opportunities in Dubai Hotel Apartments

June 05, 2024

Each year, Dubai witnesses a significant increase in the number of visitors, with the tourism sector playing a vital role in the city's economy. This growth can be attributed to Dubai's world-class attractions, excellent infrastructure, and reputation for luxury and leisure. As a result, the hospitality sector continues to expand, offering an array of accommodation options to cater to the diverse needs of travelers.

With new and luxurious hotels constantly emerging on the skyline, now is the perfect time to invest in hotel apartments in Dubai. This guide will introduce you to some of the most promising hotel projects that offer great investment potential.

List of Hotel Apartments in Dubai

South Beach Holiday Homes

Emaar’s debut holiday homes in Dubai, South Beach Holiday Homes, feature fully furnished Miami-styled apartments, available in 1, 2, and 3-bedroom configurations. The project by Emaar, offer stunning views of Marina and The Palm and a perfect blend of luxury and convenience.

Strategically situated in Dubai Harbour, between Jumeirah Beach Residences and Palm Jumeirah, these apartments provide excellent connectivity to the city via nearby monorail, tram, metro, and RTA boat stations. They also have easy access to the Sheikh Zayed Road for quick airport transfers. All these highlights make South Beach Holiday Homes one of the best hotel apartments for investment in Dubai.

Location: Emaar Beachfront
Developer: Emaar Properties

Palm Beach Towers 3

Following the successful sale of Palm Beach Towers 1 and 2, Nakheel presents the newly launched Palm Beach Towers 3. Steps away from the beach, you can choose from 1, 2, or 3-bedroom apartments. The apartment building in Palm Jumeirah offers an array of amenities, from stunning 360-degree views to a gym, a sky lounge, and an outdoor yoga area.

The residential, retail, and beach club development is located at the entrance to Palm Jumeirah. Licensed as vacation homes, these residences can also be leased for short-term rentals. Designed by the world-renowned B&B Italia, Palm Beach Towers 3 exudes a blend of style and luxury that inspires a fresh perspective.

Location: Palm Jumeirah
Developer: Nakheel

SLS Dubai Hotel and Residences

Featuring 946 units, including 254 uniquely designed hotel rooms, 321 hotel apartments, and 371 branded residences, SLS Dubai spans 75 floors and is set to be one of the tallest hotels and residences in the region. You can avail of the first-ever fractional ownership opportunity on a ready 5-star hotel apartment.

This remarkable landmark in the Downtown District is the brainchild of award-winning architects Aedas and interior designer Paul Bishop, making it a striking addition to the city's skyline. Choose from studios, 1-bedroom lofts, 1-bedroom duplexes, 2-bedroom lofts, and 2-bedroom duplexes.

Location: Marasi Drive, Business Bay
Developer: Wow Real Estate Development

Rixos Hotels and Residences 

Rixos Hotels and Residences will feature 1, 2, and 3-bedroom apartments with spacious overhanging terraces, 4-bedroom duplexes with private pools, beach houses complete with their own gardens and terraces, and ten luxury villas. Developed by Nakheel, it is the first luxury hotel and residential offering on the Dubai Islands.

This new waterfront development offers a resort lifestyle with a 700-meter beach access. Each unit in Rixos Hotel and Residences is designed for maximum privacy and features full-height windows that provide the best views and natural light.

Location: Dubai Islands
Developer: Nakheel

Baccarat Hotel & Residences

Baccarat Hotel & Residences, a new development by Shamal Holding in Downtown Dubai, offers luxurious 2, 3, and 4-bedroom apartments. Just 5 minutes from Burj Khalifa, each apartment provides breathtaking views. Residents can enjoy premier retail and dining facilities, as well as other five-star hotel services.

The Libeskind-designed residences feature extraordinary architecture and bespoke interiors. Ideally situated in Downtown Dubai, just a short distance from the bustling financial district, these residences are surrounded by spectacular shopping, renowned restaurants, cultural attractions, and vibrant nightlife. This iconic neighborhood is truly a lifestyle destination.

Location: Downtown Dubai
Developer: H&H Development

baccarat hotel & residences

Ciel Tower Dubai Marina

Ciel Tower, currently under development in Dubai Marina by The First Group, will feature a range of amenities including an all-day dining restaurant, various food and beverage facilities, a health club, a luxury spa, a rooftop infinity pool, and a rooftop terrace. Designed in a Japanese style by Yahya Jan of the architectural firm NORR, this hotel promises a unique and luxurious experience.

The 82-story tower will provide stunning views of the city and the Arabian Gulf. Its luxurious accommodations are set to make it a premier destination for travelers from around the world.

Location: Dubai Marina
Developer: The First Group

Five Luxe

FIVE LUXE in Jumeirah Beach Residence blends laid-back elegance with vibrant entertainment. As the third FIVE Hotels and Resorts property in Dubai, it embodies the brand’s reputation for fun-filled experiences that captivate every guest. The hotel offers 222 rooms and suites, some featuring a DJ booth and dancefloor, along with an extra-large pool, spa, and hot tubs.

Alternatively, guests can choose from 276 residential apartments. Indulge in a memorable dining experience at Japanese eatery Ronin, Mediterranean restaurant Cielo, or French hotspot Tête A Tête. For a glamorous Ibiza-style atmosphere, visit Playa Pacha, the hotel’s private beach and pool club, which regularly hosts international DJs to keep the party going.

Location: Jumeirah Beach Residences
Developer: Five Holdings

NH Dubai The Palm

The inaugural NH Hotels property in the Middle East is now welcoming guests on the main trunk of Palm Jumeirah. The hotel offers 227 rooms and suites, along with 306 serviced apartments spread over 14 floors. Entertainment options include a sports bar, a rooftop lounge, and a kids' club to keep the little ones entertained. Situated close to some of the city's top attractions, such as The Pointe and Palm West Beach, it's an ideal location for tourists.

Location: Palm Jumeirah
Developer: Seven Tides

The Biltmore Hotel Villas

Situated near the Mall of the Emirates, The Biltmore Hotel Villas in Dubai mirrors the opulence and hospitality of its 100-year-old Los Angeles counterpart. Guests can select from 18 3- or 4-bedroom villas ideal for families and groups, as well as two 5-bedroom accommodations with a large rooftop lounge for gatherings. 
The interiors blend Emirati elegance with modern European design. Each villa includes a private pool, jacuzzi, cinema room, and smart home technology, among other luxurious amenities. Guests at The Biltmore Hotel Villas can enjoy a variety of typical hotel services, including 24/7 security surveillance, room service, front desk assistance, premium concierge services, cleaning services, and the option for a dedicated butler and private chef upon request.
Location: Al Barsha 1
Developer: GJ Real Estate

Hilton Dubai Creek Hotel & Residences

Situated on the shores of Dubai Creek, Hilton Dubai Creek Hotel & Residences is a brand-new property and the first to open within the upcoming 'Jewel of the Creek' development. The hotel features 180 rooms and suites, including studio, 1-, 2-, and 3-bedroom duplex penthouses, offering stunning vistas of both new and old Dubai. Amenities include a fully-equipped fitness center with steam, sauna, and indoor jacuzzi, an outdoor pool for adults, a separate pool for kids, and an all-day dining restaurant.

Location: Deira

FAQs about Hotel Apartments in Dubai

When deciding between a hotel and an apartment in Dubai, the choice depends on your preferences and needs. Hotel rooms provide compact, single spaces suitable for shorter stays, while apartment hotels offer more spacious accommodations.

These apartments typically include separate living and dining areas, bedrooms, and fully-equipped kitchens, making them ideal for longer stays. They provide the comfort and convenience of a home-like environment during your extended visit to Dubai. 

Investing in a hotel apartment in Dubai can be a lucrative opportunity, given the city's thriving tourism industry and high demand for accommodation. Dubai attracts millions of visitors each year, which translates to a potentially steady stream of rental income for hotel apartments. However, like any investment, there are risks involved, and it's crucial to conduct thorough research and seek advice from financial experts before making a decision.

Hotels in Dubai can be profitable, particularly those in prime locations and with strong management. Dubai's status as a global business and leisure hub ensures a consistent flow of tourists and business travelers throughout the year. However, factors such as market fluctuations, competition, and economic conditions can impact a hotel's profitability.

The return on investment (ROI) for hotel investments in Dubai varies depending on several factors, including the location, quality of the property, management efficiency, and market conditions. Generally, hotel investments in Dubai can offer attractive ROI compared to some other real estate investments, especially when managed well and located in high-demand areas. It's advisable to conduct thorough research and seek professional advice to assess the potential ROI of a hotel investment in Dubai.

For more information, get in touch with us at Provident