PUBLISHED BY THE FIRST GROUP

www.thefirstgroup.com

DUBAI HOTEL INVESTMENTREPORT

A sleepy fishing village just 50 years ago, Dubai

now ranks among the world’s top five fastest growing cities, a desert

oasis home to 2.2 million residents, with this figure rising at an

average rate of 5% per annum (p.a).

Dubai is home to the world’s busiest international airport,

the Middle East’s biggest cargo port, the world’s tallest building, and the

region’s main financial hub. It is also rapidly gaining a reputation as one of the

world’s most popular tourist destinations.

WHY DUBAI?

2015: 2.2 million2020: 3.4 million (predicted)Source: Dubai Municipality

Bu

rj K

halif

a H

eig

ht:

828

m

Dubai population

aiRpoRt CapaCitY

70million

220millionSource: Airports Council International

Dubai International (2014):

Forecast Al Maktoum International:

2

DUBAI:A GLOBALTRADE HUB

Dubai has earned a formidable reputation as the top regional hub for many of the world’s biggest companies. The emirate’s proliferation of free trade zones has made it a magnet for organisations looking to gain a commercial foothold in the UAE, Gulf and across the Middle East.

Dubai has long served as a

trading gateway to the Middle

East and Africa. Up to 60

percent of all imports to the

Gulf and the Middle East are

routed through Jebel Ali Port,

one of the world’s biggest man-

made deep-water docks.

These free trade zones offer

a vast range of benefits,

including 100% company

ownership, locally tax-free

income, a liberalised trading

environment, no restrictions on

repatriation of profits, and most

importantly, a safe and stable

location for accessing local and

regional markets.

Source: Dubai Chamber of Commerce

AsiaAED632bn

Europe288bn GCC

114bn

North America95bn

Non-GCC Arab Countries93bn

Africa73bn

SouthAmerica23bn

Australia11bn

Dubai Trade by Region (2013)

(Value in AED million)

Dubai ranks as the Middle East’s best-performing metropolitan economy and fifth-best worldwide

top 5 laRGESt METROPOLITAN ECONOMIES WORLDWIDE 2013—14

top 5 MiDDlE EaSt METROPOLITAN ECONOMIES 2013-2014

– 0% tax-free environment: Zero local corporate and personal tax

– Strongest real estate regulatory regime in the Middle East

WHY DUBAI?

MaCau

iZMiR

iStanbul

buRSa

Dubai

1

2

3

4

5

RANK E

CONOMIC

PERFORM

ANCE 2

013-14

METRO

COUNTRY

DEVELO

PMEN

T

STATU

S

EMPLO

YMEN

T

CHANGE 2

013-14

RANK E

CONO

MIC

PERFORM

ANCE

2009-1

4

MaCau

tuRKEY

tuRKEY

tuRKEY

uaE

8 %

2 %

2 %

1 %

4 %

DEVElopED

DEVElopinG

DEVElopinG

DEVElopinG

DEVElopED

10

8

17

20

172

Dubai

RiYaDH

JEDDaH-MECCa

alEXanDRia

CaiRo

RANKIN

G

METRO

COUNTRY

DEVELO

PMEN

T

STATU

S

GDP P

ER CAPIT

AL

CHANGE 2

013-14

EMPLO

YMEN

T

CHANGE 2

013-14

RANK E

CONO

MIC

PERFORM

ANCE 2

009-14

1

2

3

4

5

uaE

KSa

KSa

EGYpt

EGYpt

4.7 %

3.9 %

3.4 %

3.0 %

3.0 %

DEVElopED

DEVElopED

DEVElopED

DEVElopinG

DEVElopinG

172

79

153

170

41

4.5 %

1.9 %

2.4 %

0.9 %

0.7 %

DUBAI: THE GLOBAL TOURISM DESTINATION

268%

Dubai touRiSM aRRiValS

2013: $5.71bn

2007:

6million

uaE touRiSM aRRiValS

2020:

20million

2024:$10.29bn

2014:

13.2million

2024:

38million

uaE inVEStMEnt in tRaVEl anD touRiSM inFRaStuCtuRE

GDP CONTRIBUTION EXPANSION (1990-2013)

tRaVEl & touRiSM

Source: World Travel & Tourism Council’s (WTTC) UAE Travel & Tourism Benchmarking report.

Travel and tourism rank as cornerstones of Dubai’s economic diversification strategy

11,012,489 guests

41,578,768 nights

11,629,587 guests

3.84

2013:

2013

2014:

2013

2014

2014

2013

+617kThe increase in number

of guests between 2013 and 2014

Percentage increase

5.6%

RISING DEMAND FOR NEW HOTEL ACCOMMODATION

GuESt niGHtS

lEnGtH oF StaY

HotEl EStabliSHMEnt GuEStS

days

days

Source: DTCM

7.4%Percentageincrease

44,663,362nights

3.78

Dubai welcomed 13.2m hotel guests in 2014 - an 8.2% rise on 2013, according to Dubai’s Department of

Tourism and Commerce Marketing (DTCM)

HOTEL PROFITS ON THE RISE

REVEnuE

total REVEnuE

AED13.6bn AED8.2bnAED15.3bn

AED23.98bn

AED8.7bn

2013

2013

2014

2014

Room revenue Other revenue

AED21.84bn2013: 2014:Source: DTCM

Total hotel revenues reached $6.5bn in 2014, representing a 9.8% increase year-on-year

DUBAI’S TOPSouRCE MaRKEt FOR HOTEL GUESTCOUNTRIES(2014)

Australasia

316,2782014

316,2782013

0.2%DECREASE

Arab Countries

4,306,0722014

4,172,9162013

3.2%GROWTH

Africa 685,9402014

618,8712013

10.8%GROWTH

South America 116,0212014

113,6942013

2.0%GROWTH

Europe 2,953,2822014

2,873,7092013

2.8%GROWTH

South Asia 1,803,5112014

1,576,4392013

14.4%GROWTH

Far East Asia 824,3262014

729,8862013

12.9%GROWTH

North AmericaCanada andMexico 624,1482014

610,2002013

2.3%GROWTH

All values as number of guests, Source: DTCM

The world’s fastest growing economies are also Dubai’s fastest growing source markets

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“Dubai iS onE oF tHE woRlD’S bESt MiD-tERM HotEl inVEStMEnt pRoSpECtS”– Jones lang laSalle Hotel investor Sentiment Survey 2014.

HOTEL INVESTOR SENTIMENT

86.7%

70%

61.1%

Positive international perceptions of Dubai’s investment potential:

EMEA average:

Global average:

International investor sentiment towards Dubai’s hotel market is 16.7% higher than the EMEA average and

more than 25% higher than the global average.

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Dubai’s successful bid to host Expo 2020 is set to radically transform the emirate’s economy, and consolidate its position as a global hub for tourism, commerce and trade.

THE EXPO 2020 EFFECT

Source: Dubai Trade

Sources: Dubai government, Expo 2020 Dubai, Brand Finance, Al-Ramz Securities, EFG Hermes, MEED)

$380bn $1.09trillion

2013:

tRaDE EXpanSion

2020:

$7bnworth of new infrastucture

$7.2bninvested in new hotel capacity

81,000new hotel rooms

25millionExpo visitors

277,000New jobs created

HEaDlinE nuMbERS

In addition, the price of property is more affordable than cities such as Hong Kong and Singapore, which have traditionally attracted overseas investors anxious to minimise the impact of taxation on their assets.

THE ONE DUBAI MARINA Introducing The One Dubai Marina, an

exclusive development to be operated

by Wyndham Hotel Group. The One

Dubai Marina is situated in a prime

location, opposite the Dubai Marina

Yacht Club and a short stroll from the

Dubai Marina Mall.

— Hotel operated to international 4-star

standards

— Restaurants & cafe

— Business Centre

— Smart Card access system

— 24-hour reception, room service and

concierge services

— Valet parking

— Swimming pool, gymnasium, steam

rooms and sun deck

— Wi-Fi and broadband internet access

throughout

THE FIRST GROUP’S upCoMinG DEVElopMEntS

Dubai MaRina

WYNDHAM DUBAI MARINA Boasting a premier location in the

heart of one of Dubai’s most popular

precincts, Wyndham Dubai Marina

is ideally positioned to generate

the strongest possible returns for

investors. The property is managed

by Wyndham Hotel Group, the

world’s largest and most diverse

hotel company, with 7,650 hotel

properties in 70 countries.

— Hotel operated to international 4-star

standards

— Restaurants & bars

— Business Centre

— Smart Card access system

— 24-hour reception, room service and

concierge services

— Valet parking

— Swimming pool, gymnasium, steam

rooms and sun deck

— Wi-Fi and broadband internet access

throughout

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THE FIRST GROUP’S upCoMinG DEVElopMEntS

JVC

tECoM

THE ONE AT JUMEIRAH VILLAGE CIRCLEThe One at JVC benefits from being just minutes away

from the World Expo 2020 site and the UAE’s newest and

largest airport, Al Maktoum International. Add to this the

backing of the highly renowned Ramada name and its

‘Plaza’ brand of hotels, and The One at JVC is destined to

bring its owners excellent returns.

— Hotel operated to international 4-star standards

— Restaurants & bars

— Business Centre

— Smart Card access system

— 24-hour reception, room service and concierge services

— Valet parking

— Swimming pool, gymnasium, steam rooms and sun deck

— Wi-Fi and broadband internet access throughout

SKY CENTRAL HOTEL TO BE OPERATED AS TRYP BY WYNDHAM

Sky Central Hotel is an iconic hotel development located

in the heart of TECOM. It ranks as The First Group’s largest

and most ambitious hotel investment project to date.

Managed by Wyndham Hotels Group, the world’s largest

and most diverse hotel operator, the property features 672

luxurious hotel suites.

— Hotel operated to international 4-star standards

— Restaurants & bars

— Business Centre

— Smart Card access system

— 24-hour reception, room service and concierge services

— Valet parking

— Swimming pool, gymnasium, steam rooms and sun deck

— Wi-Fi and broadband internet access throughout

METRO CENTRAL HOTEL APARTMENTS OCCUPANCY RATE

2014: 89%2015 PROJECTION: 90%

— 18-storeys, 210 premium, managed hotel apartments

— Rooftop swimming pool and health club

— High-end rental opportunities for short-to mid-term business lets

— Easy walking distance to Dubai Metro’s Internet City station

— Iconic 29-storey tower featuring 524 premium hotel apartments

— Ideal for short- to mid-term business or leisure rentals

— Easy walking distance to Dubai Metro’s Internet City station

— Unique 18-storey tower with a choice of 72 one-bedroom Suites and 112 Executive Suites

— Retail, food and beverage outlets— Laundry and dry cleaning services— Ground-floor luxury swimming pool, sun deck, and

gymnasium— Valet parking, 24-hour reception, concierge, room

service, and security— Wi-Fi and broadband internet access

GRAND CENTRAL HOTEL APARTMENTS LEASED FOR FIXED RATE TO AN OPERATOR

THE FIRST GROUP’S EStabliSHED pRopERtY poRtFolio tECoM

FIRST CENTRAL HOTEL APARTMENTS OCCUPANCY RATE

2014: 83%2015 PROJECTION: 85%

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THE FIRST GROUP’S EStabliSHED pRopERtY poRtFolio

SpoRtS CitY

— 128 turnkey units ranging from studio and duplex to one- and two-bedroom apartments

— Sweeping views of The Els Golf Club Golf Course and adjacent attractions

— Luxury swimming pool, sun deck and state-of-the-art gymnasium

— Close proximity to Dubai’s major road networks

— 24-hour reception and security, high-tech smart card access

THE DIAMOND OCCUPANCY RATE

H2, 2014: 96% 2015 PROJECTION: 96%

THE MATRIX OCCUPANCY RATE

NOVEMBER 2014 – PRESENT: 98%

— Award-winning, iconic 34-storey twin tower development

— Sweeping views of The Els Golf Club Golf Course and adjacent attractions

— Turnkey studios, one- and two-bedroom open-plan apartments

— Concierge services— Rooftop swimming pool, health

club and gymnasium— High-tech smart card access— DSC’s first Carrefour supermarket

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— Choice of residential apartments and award-winning penthouses

— 56 fully furnished offices— High-end technology and state-of-the-art

smart card access— 24-hour concierge— Close proximity to Dubai’s major road

networks

— 19-story tower, award-winning design— Rooftop jogging track, luxury

swimming pool, sun deck and state-of-the-art gymnasium

— 24-hour reception and security— High-tech smart card access— Close proximity to Dubai’s major road

networks

THE FIRST GROUP’S EStabliSHED pRopERtY poRtFolio

SpoRtS CitY

THE BRIDGE OCCUPANCY RATE

2014: 95%2015 PROJECTION: 96%

THE SPIRIT OCCUPANCY RATE

2014: 96%2015 PROJECTION: 96%

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