-Consolidated Group revenues and operating profit both rise by 8%
-Occupancy and average room rates in owned and leased properties up by 5%
-Food and beverage revenues rise by 7%
-UK and Russia still the biggest source markets, with growth from Saudi Arabia, China and Australia
Dubai: In anticipation of the start of the Arabian Hotel Investment Conference, which runs from 4-5 May 2014 at Madinat Jumeirah in Dubai, Jumeirah Group, the global luxury hotel company and a member of Dubai Holding, announces the highlights of the company’s performance in 2013.
Overall Performance
Jumeirah Group reports that consolidated Group revenues grew by 8% while total revenues under management went up by 11%. EBITDA levels increased by an impressive 8%. In 2013 occupancy and average room rates across the company’s owned and leased portfolio grew by 5%. This contributed to an 11% growth in revenue per available room (RevPAR). All beach properties in Dubai continued to exceed their fair market share, while consolidated room revenue increased by 11%. The company’s food and beverage operations delivered a 7% increase in revenues.
Source Market Trends – UK, Russia and Saudi Arabia Lead Growth
The UK continues to be the biggest source market for Jumeirah Group hotels around the world, representing a total 16.4% of total room nights sold. Revenue from UK travellers increased by 26%. Meanwhile Russia continues to be the largest source of revenue, rising by 11.7% in 2013 compared to 2012 and accounting for 16% of the company’s revenues. Other notable areas of growth were the Kingdom of Saudi Arabia which registered an increase of 33% in business; Chinese business grew by 32% and Australia by 70% driven by the partnership between Qantas and Emirates Airline.
Market Share Growth – Newer Properties Lead the Way
One of the key measures of performance in the hotel segment is the revenue generated per available room compared to that of the competition. The majority of Jumeirah’s hotels and resorts grew their market share, with several notable performers including Jumeirah at Etihad Towers in Abu Dhabi which increased its share by 88%, Jumeirah Dhevanafushi in the Maldives by 83%, Grosvenor House Apartments by Jumeirah Living in London by 51% and Jumeirah Himalayas Hotel in Shanghai by almost 17%.
European Update – UK Greatest Contributor; Greatest Growth from Gulf
Jumeirah Group currently has eight properties in Europe – Jumeirah Carlton Tower, Jumeirah Lowndes Hotel and Grosvenor House Apartments by Jumeirah Living in London, UK; Jumeirah Port Soller Hotel & Spa in Mallorca, Spain; Jumeirah Frankfurt in Germany; Jumeirah Grand Hotel Via Veneto in Rome, Italy; Jumeirah Bilgah Beach Hotel in Baku and Pera Palace Jumeirah in Istanbul. All hotels enjoyed a strong year in 2013, with Jumeirah Frankfurt rising to the top of its competitor set and Jumeirah Port Soller winning several industry awards. The UK remains the largest source market for business into the European portfolio, contributing 18.7% of revenues and growing by 12% over the previous year. Combined business from countries in the Gulf region accounted for 27.8% of the European hotels’ room nights and 35% of the revenues.
Online Performance – the Power of Rich Media
Jumeirah’s YouTube channel enjoyed almost 10 million views in 2013, more than any other hotel company in the world. The Facebook fan base increased by 112% to 319,200 and number of Twitter followers grew by 67% to 97,250. Revenues through electronic channels increased by 13%, driven by bookings on Jumeirah.com as well as through third party intermediaries such as booking.com and Expedia, which increased by 46%. The Jumeirah website welcomed over 10 million unique visitors in 2013, up 12% over the previous year and the company’s mobile website attracted over 850,000 visitors, up 46% on 2012.
Asia Focus – Growth in China
Jumeirah Group’s first hotel in China, Jumeirah Himalayas Hotel in Shanghai, grew market share in a highly competitive market, won several awards for its rooms and restaurants and recently opened a new Club Lounge and Premium Suites in response to the demand for more high-end luxury accommodation. The company’s two resorts in the Maldives – Jumeirah Dhevanafushi and Jumeirah Vittaveli – continue to build impressive market share and an outstanding response from guests on social media channels. Jumeirah Group currently has plans for five further properties in China in Guangzhou, Hangzhou, Sanya, Macau and Qindaohu, a resort in Bali, Indonesia and a city hotel in Mumbai, India. These are expected to be handed over to Jumeirah to operate between 2015-2017.
Development Update – Deals in Oman and Russia; construction in Dubai
During 2013 Jumeirah Group signed management agreements to operate a hotel in St Petersburg, Russia, and two hotels in a luxury resort on the coast of Oman, near Muscat. Both are scheduled to open in 2016. The company also signed a series of letters of understanding in the Middle East, Asia, Africa and Europe during 2013 which are expected to mature into management agreements in 2014 to add to an already robust pipeline of new developments. The most significant development in the UAE was the start of construction work on a 435-room luxury beachfront hotel to complete the Madinat Jumeirah resort. This is expected to open in early 2016.
CEO Statement
President and CEO of Jumeirah Group Gerald Lawless, said at the opening of the Arabian Hotel Investment Conference: “2013 was a stellar year for Jumeirah Group, a year that concluded the announcement that Dubai would host the World Expo in 2020. We expect this to further enhance the energy that is going into the growth of Dubai as not only a destination for travellers, but also as a home for businesses, entrepreneurs and their families. The first quarter of 2014 has seen that momentum continue with strong occupancy in our hotels, restaurants and other businesses, strong demand for new hotel projects both in the Gulf region and internationally, and strong interest from talented people to choose to build their careers with a proud, Dubai-born brand like Jumeirah.”
