Gearing for Expo 2020: DPG sets 2017 deadline for 40 hotels

All the buyers of the 40 hotel plots sold by Dubai Holding have been given the deadline to complete their projects by 2017, a senior Dubai Properties Group (DPG) executive has revealed.

“During the Arabian Travel Market, we had launched the 40 plots for mid-range hotels. All these plots have been sold to third parties who have been strictly given the timeline to complete their projects by 2017,” Mohammad Al Habbai, Chief Officer for Urban Planning and Infrastructure, DPG, told Emirates 24|7.

DPG is the real estate development arm of Dubai Holding.

Mohammad Al Habbai, Chief Officer for Urban Planning and Infrastructure, DPG (Supplied)

“We have given them very attractive payment plan and construction timeline. We are going to monitor them every six months to ensure that they are on the right track.”

In terms of penalties for “errant” developers, Al Habbai said those failing to start their projects might have to “forfeit” their plots.

“If one has achieved 90 per cent construction, it means he is serious and we will give him some time, but if that’s zero (construction hasn’t started)… we will take back the plot,” he asserted.

In May, Dubai Holding launched 40 plots for development of mid-range hotels in the emirate, which are expected to house over 8,000 rooms.

Artist impression of The Walk, JBR (Supplied)

Plans to increase mid-range hotels have been put in place since September 2013 in order to meet the growing visitor demand expected for Expo 2020, which will be held from October 20, 2020 till April 10, 2021.

In September, the Dubai government said the announced financial incentives, especially to develop more mid-range hotels, had got a “fantastic response.”

Under the incentives, companies will be granted a concession on the standard 10 per cent municipality fee which is levied on the room rate for each night of occupancy, land transfers will become easy with approvals being centralised and given within three months.

Dubai, currently, has 77 five-star hotels, 83 four-star hotels, and 66 properties in the three-star category.

Developers coming to Business Bay

Asked if DPG was going to repossess plots from developers, who still haven’t started construction in Business Bay, Al Habbai said: “We can’t take them (plots) back… most of the plots in Business Bay have been sold to third party developers.

“We have completed the infrastructure; the Road and Transport Authority has opened tunnels and that will ensure more developers to come and build. We are noticing the change.”

He restated that they have been getting requests from developers who were seeking change to their land use i.e. conversion from offices to hotels/serviced apartments.

In fact, Al Habbai had told this website earlier that DPG had received over 20 applications from developers who wanted to convert their office projects into three and four hotels/or serviced apartments.

(Read: Dubai developers converting office towers to hotels)

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