Category: Business Segments

Q1 2017 revenue increases by 15% to AED 4.072 billion (US$ 1.109 billion)Recurring revenues from malls, hospitality, entertainment and leisure businesses at AED 1.592 billion (US$ 433 million), 39% of the total Group revenueRevenue from international operations grew by 62% to AED 806 million (US$ 219 million), 20% of total revenueDistributes AED 1.074 billion (US$292 million), equivalent to 15% of share capital, as cash dividend to shareholders for 2016
Dubai, UAE; May 14, 2017:Emaar Properties PJSC recorded a net profit of AED 1.384 billion (US$ 377 million) in the first quarter (January to March) 2017, an increase of 15 per cent over the same period last year at AED 1.205 billion (US$ 328 million).

Total revenue for Q1 2017 was AED 4.072 billion (US$ 1.109 billion), an increase of 15 per cent over Q1 2016 revenue of AED 3.529 billion (US$ 961 million).

Recurring revenues from the malls, hospitality, entertainment and leisure businesses of Emaar were AED 1.592 billion (US$ 433 million) in Q1 2017 contributing 39 per cent of the total Group revenue.

Emaar’s international operations recorded Q1 2017 revenue of AED 806 million (US$ 219 million), an increase of 62 per cent over Q1 2016 revenue of AED 499 million (US$ 136 million), accounting for 20 per cent of the total Group revenue.

At the Annual General Meeting of Emaar Properties, shareholders have approved to distribute a cash dividend of AED 1.074 billion (US$ 292 million), equivalent to 15 per cent of the share capital.

Focus on value creation

Mohamed Alabbar, Chairman of Emaar Properties, said that the positive results achieved by Emaar across its operations underlines the focus of the company on continued value creation for its stakeholders. “Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth. This is driven by our new customer-oriented digital strategy that helps optimise our resource use and enhance efficiency.”

He added: “We have seen an increase in property sales in Dubai, and we are on track with our construction milestones. Emaar’s performance underpins the positive economic environment of Dubai led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai.”

Strong property sales

Emaar recorded robust property sales of AED 6.049 billion (US$ 1.647 billion) during Q1 2017 in Dubai. This is 44 per cent higher than the value of property sales in Dubai during Q1 2016 at AED 4.194 billion (US$ 1.142 billion), and 115 per cent higher than the figures for Q4 2016 at AED 2.810 billion (US$ 765 million). The Group now has a backlog of AED 46.245 billion (US$ 12.591 billion) to be recognised as revenue in the next few years.

The property business in Dubai was highlighted by new residential launches in Downtown Dubai, Dubai Marina and joint venture projects under Dubai Hills Estate, Dubai Creek Harbour and Emaar South.

Emaar accomplished a key milestone with the completion of the pile foundations for the new global icon The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour. Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate, which now has green avenues, lakes, waterbodies and roads.

The new property launches in Q1 2017 includes Downtown Views II, located in the Zabeel area of Downtown Dubai, Vida Residences in Dubai Marina, Creek Gate and Harbour Gate in Dubai Creek Harbour and Golf Views apartments and Urbana III stacked townhouses in Emaar South.

Expanding malls and hospitality operations During Q1 2017, Emaar Malls (DFM: EMAARMALLS) recorded revenues of AED 836 million (US$ 228 million), similar to Q1 2016 revenue of AED 833 million (US$ 227 million).

Net profit from the malls business during Q1 2017 was AED 539 million (US$ 147 million), similar to Q1 2016 net profit of AED 529 million (US$ 144 million) and 19 per cent higher than Q4 2016 net profit of AED 452 million (US$ 123 million).

The shopping mall assets of Emaar Malls, including its flagship – The Dubai Mall – welcomed over 34 million visitors in Q1 2017, 10 per cent higher than Q1 2016. With a gross leasable area of about 6 million sq ft in Dubai, Emaar Malls is expanding The Dubai Mall’s Fashion Avenue by another 1 million sq ft built-up area this year. Additionally, The Dubai Mall is adding new retail and leisure attractions with the Boulevard, Fountain Views and Zabeel expansions.

Emaar’s hospitality, commercial leasing and entertainment businesses reported revenues of AED 756 million (US$ 206 million) during Q1 2017, an increase of 5 per cent over the same period last year at AED 722 million (US$ 197 million).

Emaar’s hospitality segment marked the launch of two new hotels in Q1 2017 including Address Boulevard, a city lifestyle resort under the portfolio of Address Hotels + Resorts, and Rove Healthcare City. A contemporary midscale brand, Rove Hotels are being developed as a joint venture with Meraas Holding with plans to roll out 10 hotels in Dubai by 2020.

The premium upscale The Address branded hotels under Emaar Hospitality Group recorded an average occupancy of 92 per cent during Q1 2017, higher than the industry average. Emaar is in the course of expanding its hospitality business with 26 upcoming projects in the UAE, Turkey, Egypt, Saudi Arabia and Bahrain.

With 190 million sq m of land bank in the UAE and key international markets, Emaar assets are valued at around AED 179 billion (US$ 49 billion).

At a height of over 220 metres, Sky Bridge has three main floors featuring 8 luxurious Sky Collection duplex units, and a 70-metre long infinity pool overlooking Burj Khalifa and The Dubai FountainThe 85-metre-long, 22-metre-high Sky Bridge has a maximum width of 30 metres, and is built with 4,500 tonnes of structural steelGlobal design teams, construction and engineering professionals worked to deliver a new landmark for the nation
Dubai, UAE; May 11, 2017: Dubai now has a new architectural landmark: Emaar Properties today accomplished the challenging engineering feat of designing, constructing and lifting an iconic Sky Bridge that links the new Address Sky View hotel with the Address Residences Sky View in Downtown Dubai.

Rising at a height of over 220 metres, the 85-metre-long Sky Bridge, with a height of 22 metres and maximum width of 30 metres, has three storeys and will feature eight units of luxurious Sky Collection Duplexes, a 70-metre-long infinity pool that overlooks Burj Khalifa and The Dubai Fountain, and other amenities.

Billed to be a new touristic attraction that also adds economic value, the Sky Bridge is fabricated using 4,500 tonnes of structural steel, and was lifted in position using Strand Jacking Technology, customised for the project. A team of global experts from five different entities worked on the project that was completed in around 365 days by over 300 professionals and skilled workers.

Mohamed Alabbar, Chairman of Emaar Properties, said: “Building and lifting the Sky Bridge is the result of the hard work and collaboration of some of the best international experts in the field, who addressed various challenges through their innovative and creative approach. They have accomplished a remarkable engineering feat that will serve as a referral point in modern construction. Sky Bridge is an added value to Downtown Dubai, and contributes to the pride of our nation.”

The unique Sky Bridge addressed several design challenges given the extensive loads of steel and concrete, as well as the loads related to the infinity pool, pool deck and façade, it needed. The ambient temperature difference was also considered during the design stage to ensure that it suits the region’s climate. A steel frame with three levels was designed to hold the huge loads transferred to the core walls of the two towers it links.

To address the construction challenges, the main body of the bridge was pided into five elements, each weighing over 400 tonnes each. The fifth element is the MEGA truss in the middle that has a total weight of over 1,500 tonnes. High capacity cranes, not commonly used in the region, were deployed to lift the huge weights. Special high-capacity hydraulic jacks were also imported from Switzerland.

Another challenge was designing eight custom-made Boom and Derrick systems that had to be assembled at level 50 – about 200 meters high – on both towers. Laser technology was deployed for precise leveling.

To execute the seamless lifting of the Sky Bridge, each element was assembled on ground. They were then lifted using the Strand Jacking Technology over a period of four months from November 2016 to February 2017. The MEGA truss, the heaviest component, was lifted to the height of 220 metres using the high-capacity hydraulic jacks and cables.

The Sky Bridge has undergone extensive fire proofing and other safety and security tests. Each component was elaborately tested to ensure the highest standards of quality and durability. The infinity pool was designed taking into consideration the maximum comfort level of residents.

Given the proximity to Burj Khalifa Metro Station and the Metro Link, elaborate safety measures were put in place, and a clearly structured logistics plan was followed through close cooperation with the government authorities.

The super-lifting of the Sky Bridge also required tremendous planning, team work and technological perfection, especially given wind speeds of up to 80 km/hour. Each element had to be precisely lifted and erected while addressing all the required safety considerations.

A hotel, residential and serviced apartment complex linked directly to The Dubai Mall Metro station through a travellator, the 60-floor Address Sky View towers are 260 meters high, and offers spectacular 360 degree views of Downtown Dubai and the city. The launch of homes and serviced residences in the development has gained overwhelming customer response.

Designed by Skidmore, Owings and Merrill, the architects of Burj Khalifa, Address Sky View has 169 luxurious hotel rooms on 12 levels with amenities including restaurants, lounges, a world-class event venue, meeting rooms, three pools including a rooftop pool and a spa. Address Residences Sky View has 551 exceptional serviced residences that are fully furnished with floor-to-ceiling windows, offering stunning views.

A dedicated lobby for Address Residences Sky View welcomes residents and guests with warmth and elegance, as distinct materials and textures, including wood, glass, stone and beautiful leathers with soft lighting, evoke a sense of luxury. For more details on Address Sky View, log on to: www.emaar.com

For footage on the Sky Bridge lifting, please click here.

RENOWNED GLOBAL EXPERT GEORGE BLANKENSHIP SHARES HIS EXPERIENCE WITH EMAAR EXECUTIVES ON DELIVERING INNOVATIVE CUSTOMER EXPERIENCE
‘Emaar Speaker Series’ is a monthly series of guest lectures by prominent business leaders, experts and futurists. The series, organised by Emaar Properties, is an integral part of Emaar’s transformational journey focused on enhancing customer excellence, delivering innovation with a customer-first mindset and achieving sustained value creation for its shareholders and all stakeholders.

To date, Emaar has hosted high profile speakers including Salim Ismail the best-selling author of Exponential Organizations, Jimmy Allen the co-leader of Bain & Company’s strategy practice, Dr. Parag Khanna a leading international relations expert and global strategist and Tunc Cerrahoglu, a former senior executive from Anheuser-Busch InBev.

Emaar marked its fifth ‘Emaar Speaker Series’ event with a keynote speech by George Blankenship. Blankenship is a former Tesla, Apple and GAP Inc. executive, who has worked alongside the world’s most innovative business leaders like Elon Musk and Steve Jobs to deliver retail stores and experiences that delight the customer and generate customer loyalty.

Blankenship’s keynote speech focused on the key success factors in customer service, that are demonstrated by the world’s most successful and customer-obsessed companies. During his keynote, Blankenship highlighted real-world case studies of how customer innovation, digital transformation and employee empowerment can enhance customer experience and generate shareholder value.

Having formulated and executed retail growth strategies as a senior real estate executive, Blankenship shared insights which underlined customer focus as a key imperative for Emaar.

The event was attended by over 100 Emaar executives, who gained invaluable insights on taking Emaar’s customer service standards to the next level.

The Speaker Series is an investment by Emaar in its executives and reflects the management’s commitment to nurture its talents and develop the knowledge and skills of its employees. Emaar plans to further broaden the platform of learning for its executives and to engage broader audiences through its social platforms.

Address Hotels + Resorts, Vida Hotels and Resorts, Palace Downtown and Manzil Downtown Apps tailored on their guest profiles & preferences are now live; Rove Hotels App to go live shortlyIntegrated with backend systems to offer management teams crucial real time data for enhancing guest experience
In a never-before example of digital transformation in the hospitality industry, Emaar Hospitality Group has set an impressive first with the launch of five native Applications (Apps) that enhance the digital lifestyle experiences for guests.

The first-of-its-kind in the world of hospitality, the Apps stand apart for their focus on individual hotels under the Group as opposed to conventional industry practices, and assure end-to-end digital connectivity with the hotel for guests over their mobile phone.

The introduction of the new Apps is in line with the new digital strategy of Emaar to drive enhanced customer experiences. The ‘mobile first’ approach of Emaar Hospitality Group, combined with its ambition to be an industry leader in using technology to enhance guest experience, is set to be an industry game changer by delivering an innovative digital experience for guests.

The Apps are part of a series of other digital initiatives being implemented by Emaar Hospitality Group. They draw on the tremendous potential offered by the increased internet and smartphone penetration in the region. It is also aligned with the aspirations of the region’s 200 million youth population, who form the new generation of travellers and entrepreneurs.

Emaar Hospitality Group selected Go Find It Technologies SA as its partner in developing the Apps. Marking the first phase of the digital transformation across the Group, the Apps are being developed for Address Hotels + Resorts, Vida Hotels and Resorts, Rove Hotels, Palace Downtown and Manzil Downtown, taking into consideration the unique guest profiles and preferences of the hotel brands and individual hotels.

Address Hotels + Resorts, Vida Hotels and Resorts, Palace Downtown and Manzil Downtown Apps have gone live with the Rove Hotels App to go live shortly.

Olivier Harnisch, Chief Executive Officer, Emaar Hospitality Group, said: “This is truly historic as we pioneer a new digital trend for the hospitality sector. Now our guests have all the connectivity and convenience they need for a memorable experience at our hotels right at their fingertips.

“The five Apps are industry-defining, as they take into consideration the unique customer requirements of our three hotel brands. They will enable our guests to access a host of services on their mobile phones, while also providing us with real time data that will help us deliver value-added services to meet and exceed their expectations.”

The five Apps enjoy superior functionality. They are integrated with the hotels’ reservation systems, offer guests access to city guides, are social media friendly and push relevant information such as an invitation to join the ‘U By Emaar’ loyalty programme, special offers, relevant event information and much more.

The content offered within the Apps includes professionally produced City Guides highlighting what is happening in and around the city on a daily basis. This regularly updated information will account for around 30 per cent of the content within each App.

Additionally, individual hotels will create their own content to engage with guests in a meaningful way while making it easier for marketers to highlight relevant events as well as special offers across stays, dining, spa and more.

Address Hotels + Resorts, Vida Hotels and Resorts, Palace Downtown, and Manzil Downtown Apps on iOS and Android are available for download on the App Store and Google Play; the Rove Hotels App will be available soon.

Founder & Chairman of Emaar Properties shares the company’s success story with students

Mohamed Alabbar, Founder and Chairman of Emaar Properties, shared the success story of Emaar with over 80 students at the prestigious Harvard Business School in Boston.

Harvard Business School Senior Lecturer Sid Yog selected Emaar as the subject of a case study titled Emaar: The Center of Tomorrow, Today for his second-year elective MBA course Investing in Emerging Markets.

The case study on Emaar was conducted by Yog and Research Associates Esel Cekin and Marc Homsy, following an intensive review of the company’s operations and detailed interviews with the senior management.

The case evaluates how Emaar addressed the challenges of the global financial crisis and the tough measures that Alabbar put in place to steer the company to become “the only real estate developer in Dubai to have continuous positive returns during the global financial crisis.” It also recognises the transformational impact that Emaar has had on the physical landscape of Dubai.

During his visit to the Harvard Business School campus, Alabbar presented Emaar’s growth story. In less than two decades of operation, Emaar has become the leading player in the Middle East’s property development industry and has delivered highly-demanded residential communities, iconic shopping malls and hotel developments.

Alabbar said: “Our founding vision was to shape the future through our pioneering model of integrated master-planned communities. Today, we have defined the future of cities through our world-class developments that not only deliver a sense of belonging to residents but also catalyse local economies. We have always focused on long-term value creation for our stakeholders and we consistently deliver on our promise.”

Alabbar shared his strategic outlook for the company and highlighted its digital transformation. “This is the era of digital transformation for Emaar. Across all aspects of our operations we are leveraging the potential of digital technologies to enhance efficiency, productivity and customer service standards. Today’s era is defined by how agile, flexible and responsive we are not only to the demands of customers but also to a shifting market landscape.”

Alabbar also presented e25, a new start-up initiative that he has launched within Emaar. e25 is a team of 25 under 25 year olds that will bring a new engine of ideas and innovations to the company and shape its future leaders.

Emaar Hospitality Group becomes the first international hotel operating company to offer incentive-fee-only management agreements, creating mutually beneficial opportunities for owners and operatorsThe new contractual model removes the customary base management fee and links the operator’s fee earnings exclusively to generated profit rather than revenue
Emaar Hospitality Group, the hospitality and leisure business of Emaar Properties PJSC, has introduced an industry-defining model for hotel management agreements.

This is a marked departure from the prevalent fee structure in the hospitality sector, where hotel operators receive a base fee as a percentage of gross revenue and an incentive fee based on the gross operating profit.

The alternative model offered by Emaar Hospitality Group is based only on an incentive fee, which is driven by the operator’s ability to generate profits rather than revenues.

In an industry where the majority of global fees earned are linked to revenue, the new model aligns the interests of the owner and operator as it focuses on profit generation, replacing the emphasis on top-line results with a focus on bottom line achievement.

Olivier Harnisch, Chief Executive Officer of Emaar Hospitality Group, said the new management fee model sets an industry benchmark. “There will be greater responsibility on the operator to drive operating profits that will create sustained and long-term value for hotel owners, unlike under the prevailing model, where the operator earns a base management fee regardless of operating expenses.

“The distribution landscape in the hotel industry has changed dramatically over the past years and we feel that profit is a more powerful indicator of operator performance than revenue. We are leveraging our experience both as a hotel owner and operator in developing the new model. With ten years of history in developing and operating three industry leading hotel brands, we understand the operations side of hotels, and as part of the publicly listed Emaar Properties, we are also focused on continued value creation,” said Harnisch.

“The new model brings two core strengths: One, it enhances owner-operator relationships with greater onus on the operator to drive profitability. Two, it creates lasting value for hotel owners, even in the face of challenging economic conditions as the operator will focus on minimising operating expenses and strengthening profits,” explained Harnisch.

Emaar Hospitality Group has already signed several management contracts to operate hotels in the UAE, Saudi Arabia, Bahrain, Turkey and Egypt for other developers and hotel owners. The new model is offered in addition to standard model and gives the hotel owners the opportunity to choose between the two.

“With the new model, we are looking to expand our footprint in the UAE and other international markets to operate hotels with a clear commitment on our side to enhance operating profits. We have evaluated the market landscape in preparing the new model, and we see it as an ideal fit to all geographies,” said Harnisch.

Globally, the hospitality sector is relooking at owner-operator contracts with consideration given to how profits and revenues are apportioned. A study by CharlesRussselSpeechlys* observes that with the base fee and share of profit structure, owner and operator risk and reward are totally unaligned, “as the internal rate of return that operators generate from revenue-based fee was normally sufficient to make the contract profitable for the operator” irrespective of the hotel’s profitability.

Unlike many international hotel operating companies that are shedding their property and focusing on hotel management agreements, Emaar Hospitality Group is not only expanding its management contract expertise but also strengthening its own development pipeline with a total of 20 hotel projects – in Dubai and Fujairah – as well as in international markets including Egypt, Bahrain, Turkey and Saudi Arabia.

Located on Reem Island, Vida Beach Reem Island Abu Dhabi and Vida Beach Residences Reem Island Abu Dhabi will add to the portfolio of Emaar Hospitality Group’s upscale lifestyle hotel brandScheduled to open in 2020, the iconic hotel and extended stay serviced residences overlook the Arabian Sea within a marina settingVida Beach Reem Island Abu Dhabi will feature 262 guestrooms and suites, and Vida Residences Beach Reem Island Abu Dhabi will have 192 serviced residences, a varied food and beverage offering, spa and fitness centre, meeting and conference space, and other recreational facilities.
Vida Hotels and Resorts, the upscale lifestyle hospitality brand for the new generation of business executives, entrepreneurs and leisure travellers by Emaar Hospitality Group, has signed a management agreement with Aldar Properties, Abu Dhabi’s leading listed property development, investment and management company, to operate a hotel within the developer’s master-planned community on Reem Island.

The hotel and serviced residences are part of a multi-faceted four-tower development overlooking the Arabian Sea. The two Vida Beach Reem Island Abu Dhabi towers feature 262 spacious guestrooms and suites in addition to 192 serviced residences for short or extended stay and a range of world-class amenities including speciality restaurants, business centres, conference venues and wellness retreats, details of which will be announced in due course. The development also includes 329 marina residences spread across two towers. Construction will commence this year.

Envisaged as an upscale urban lifestyle resort set in a spectacular location, Vida Beach Reem Island Abu Dhabi and Vida Beach Residences Reem Island Abu Dhabi will be near a premium retail destination with a choice of dining and leisure options adding to the convenience of residents and guests. Located approximately 30 km from Abu Dhabi International Airport and 3 km from the city centre, the hotel is expected to be operational by 2020.

Jassem Saleh Busaibe, Chief Asset Management Officer, Aldar Properties, said: “We are delighted to partner with Emaar Hospitality Group in bringing Vida Hotels and Resorts to Abu Dhabi. This new project will add significantly to the character of Reem Island, and will be like nothing currently in existence in the city. This project not only falls within our destination development strategy, but will also add significantly to our asset management business. This agreement will really help to strengthen our master planned community on Reem Island, adding market leading amenities from which both residents and visitors alike will benefit.”

Olivier Harnisch, Chief Executive Officer of Emaar Hospitality Group, said: “The management contract to operate Vida Beach Reem Island Abu Dhabi is a significant milestone for Vida Hotels and Resorts, our contemporary upscale lifestyle brand that has defined its unique niche in the region’s hospitality sector. To be associated with such a prestigious development by Aldar Properties serves as a strong testament to the differentials that Vida Hotels and Resorts brings to the industry with its focus on creating smart urban hubs for a discerning clientele.”

He added: “The expansion to Abu Dhabi further highlights our strong competencies in undertaking mixed-use projects and delivering outstanding service. We will continue to explore growth opportunities in the UAE and beyond by delivering an exceptional hospitality experience focused on delivering warmth, simplicity and youthful vitality.”

Launched in 2013, Vida Hotels and Resorts operates hotels such as Vida Downtown in Dubai. Positioned as a lively and vibrant hub where inspiring minds can create, connect and come alive, its hotels are a stimulating environment where style meets convenience and interactivity. Additionally, Vida Hotels and Resorts has signed management contracts to operate hotels and serviced residences in Dubai, Bahrain and Saudi Arabia.

Emaar Hospitality Group, which marks its tenth year in operation, now has 26 upcoming projects.Showcases its portfolio of 10 operational hotels and three serviced residences, and other new properties at the premier travel, tourism and hospitality event.
Emaar Hospitality Group, the hospitality and leisure business of Emaar Properties, today unveiled six new hotel projects as part of its regional and international expansion plans, at the Arabian Travel Market (ATM) 2017.

The new hotels and serviced residences in Dubai, Abu Dhabi and Egypt add to a portfolio of upcoming properties under the three hotel brands of Emaar Hospitality Group – the premium luxury Address Hotels + Resorts, the upscale lifestyle Vida Hotels and Resorts, and the contemporary midscale Rove Hotels.

With 10 operational hotels and three serviced residences already, Emaar Hospitality Group now has a pipeline of 26 upcoming projects, a testament to the home-grown competencies of the Group and its expansion strategy to operate hotels in key locations in high-growth markets.

Announcing the new projects at a press conference in Dubai, Olivier Harnisch, Chief Executive Officer of Emaar Hospitality Group, said the Group’s expansion is underpinned by a commitment to deliver superior guest experiences through distinctively branded properties in key markets globally.

“We are marking our tenth decade of operation this year, and in such a short span of time, we have established our reputation as a home-grown Dubai hospitality group with a fast-growing regional and international footprint. The upcoming properties highlight our competencies as a hotel and serviced residences operator, committed to delivering guest-centric lifestyle experiences.

“We have recorded a positive growth year in 2016 and continue to build on the success, with the launch of new properties including Address Boulevard and three Rove Hotels in a span of just nine months, all in Dubai. This demonstrates our focus on not only serving the luxury hospitality market of the city but also to create distinctive brand experiences that appeal to the new millennials and next generation of travellers,” added Harnisch.

Emaar Hospitality Group’s track-record – with average daily rates and occupancy levels higher than industry average – reflects the strong growth of Dubai’s tourism and hospitality sector, said Harnisch. “The Dubai Tourism Vision and Expo 2020 Dubai are strong drivers of growth for the industry, and we will continue to drive our expansion and create a truly world-class infrastructure for visitors to Dubai.”

New projects in Dubai, Abu Dhabi and Egypt

Emaar Hospitality Group’s new projects include Address Dubai Creek Harbour and Address Residences Dubai Creek Harbour in Dubai, which will serve as a vibrant hospitality and leisure hub within Dubai Creek Harbour, the 6 sq km mega-development anchored by the iconic new Tower, designed by Santiago Calatrava. The project opens to spectacular views of the waterfront and the Downtown Dubai skyline.

Also under Address Hotels + Resorts are the new Address Marassi Beach Resort and Address Residences Marassi Beach Resort, which are part of the beachfront Marassi master-planned development by Emaar Misr in Egypt. Emaar Hospitality Group has already signed a management contract to operate Address Marassi Golf Resort + Spa in the same master-development. These add to the upcoming projects of Address Hotels + Resorts in Dubai, Fujairah, Bahrain and Turkey.

Four new projects will be operated under the Vida Hotels and Resorts brand. These include the Vida Dubai Creek Harbour, Vida Dubai Marina and Vida Residences Dubai Marina. Further, Vida Hotels and Resorts marks its expansion to Abu Dhabi with the management contract to operate Vida Beach Reem Island Abu Dhabi and Vida Residences Beach Reem Island Abu Dhabi, both for Aldar Properties.

Having already expanded with hotel management contracts in Saudi Arabia and Bahrain, Vida Hotels and Resorts is further strengthening its international portfolio with Vida Marassi Marina and Vida Residences Marassi Marina in Egypt.

Emaar Hospitality Group plans to expand its footprint to other high-growth markets as well as gateway cities such as India and China, and other global gateway cities for the group.

Upcoming properties in Dubai

“While we are focused on international markets, we are also growing our footprint in the UAE to meet the burgeoning demand for hotel rooms – in the luxury, upscale and midscale segments,” said Harnisch.

This is reflected in the recent opening of Address Boulevard, the first city lifestyle resort under the portfolio of Address Hotels + Resorts, and three Rove Hotels – Rove Downtown, Rove City Centre and Rove Healthcare City. The Group is on course to open Rove Trade Centre shortly as well as drive the roll-out of six more hotels in Dubai Marina and Dubai Parks and Resorts, among others.

The current portfolio of hotels by Emaar Hospitality Group in Dubai includes Address Boulevard, Address Dubai Mall, Address Montgomerie, Address Dubai Marina, Palace Downtown, Vida Downtown, Manzil Downtown, Rove Downtown, Rove City Centre and Rove Healthcare City.

“An award-winning hospitality and leisure provider, our commitment is to surpass guest expectations. In addition to expanding our portfolio, we are driving the digital transformation of our services to create added value for our guests. Our projects are showcased at ATM 2017 and we look forward to strengthening our partnerships at this premier event, and to highlight our focus on doubling our portfolio by 2020,” concluded Harnisch.

Seven Directors of the Board elected by the General Assembly
The second Annual General Meeting (AGM) of Emaar Malls (DFM: EMAARMALLS), the shopping malls and retail business majority-owned by Emaar Properties, today approved a proposal by the Board of Directors to distribute 10 per cent of the share capital, equivalent to AED 1.301 billion (US$ 354 mn), as cash dividend to the shareholders.

The assembly also elected a Board of Directors comprising seven members: Mr. Mohamed Alabbar, Mr. Ahmad Al Matrooshi, Mr. Abdulrahman Al Hareb, Mr. Abdulla Belyoahah, Mr. Helal Saeed Almarri, Mr. Mohamed Al Hussaini, and Mr. Ali Ibrahim Mohamed Ismail. A special resolution was passed by the AGM approving the change in number of Board members from nine to seven.

The AGM also approved the report of the Board of Directors on the activities and financial position of the company as well as the auditor’s report and the company’s balance sheet for the fiscal year ending December 31, 2016. Ernst & Young was chosen as the auditor for 2017.

Addressing the shareholders, Mohamed Alabbar, Chairman of Emaar Malls and Emaar Properties, said the success of Emaar Malls is led by the UAE’s robust growth and the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, to establish the nation as a smart hub for trade and commerce.

“We are driving our growth with our focus on delivering enhanced retail experiences for our customers. We are investing in new and advanced technologies that will create all-encompassing experiences for our customers and contributing to sustained value for our shareholders.”

He added: “We will strengthen our malls assets with the expansion of The Dubai Mall and the development of retail districts in Dubai Hills Estate and Dubai Creek Harbour, which are designed for the new generation of tech-savvy, trend-conscious customers.”

Emaar Malls recorded a net profit of AED 1.874 billion (US$ 510 mn) and revenue of AED 3.227 billion (US$ 879 mn) in 2016. The shopping malls assets of Emaar Malls – The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold & Diamond Park and the community shopping centres – welcomed 125 million visitors during 2016, with gross leasable area (GLA) occupancy levels averaging at 96 per cent.

With a GLA of about 6 million sq ft in Dubai, Emaar Malls is expanding The Dubai Mall’s Fashion Avenue by another 1 million sq ft built-up area. New retail and leisure opportunities are being created for retailers and customers with the Boulevard, Fountain Views and Zabeel expansions of The Dubai Mall.

Emaar Malls is also developing dedicated retail precincts in Dubai Creek Harbour and Dubai Hills Estate. Several community mall projects are also being planned to serve Emaar’s integrated lifestyle developments.

Shareholders of Emaar Malls are requested to update their contact details and addresses with the Dubai Financial Market (DFM) to make sure the dividends are received appropriately, as the payment will be made through DFM.

Focus on added value creation for shareholders and strengthening customer service

Dubai, UAE; April 17, 2017: The 19th Annual General Meeting (AGM) of Emaar Properties PJSC today declared a cash dividend of 15 per cent of the share capital, equivalent to AED 1.074 billion (US$ 292 million), for distribution to the company’s shareholders.

The AGM also approved the report of the Board of Directors on the activities and financial position of Emaar, the Auditor’s report, and balance sheet for 2016. Ernst and Young was appointed as the auditor for 2017. The assembly also approved the Employees Incentive Scheme.

Mohamed Alabbar, Chairman of Emaar Properties, said that Emaar has created sustained value for shareholders through its competencies premium real estate, malls and hospitality. “The leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, inspires us to push our boundaries and expand our operations with the goal of creating added value for our stakeholders.”

He added: “Our ambition is to further strengthen customer loyalty and enhance our brand value. We will achieve this with our absolute focus on being a customer-centric organisation. We will also strengthen our financial performance by maintaining a robust balance sheet. Across all our businesses, we focus on bringing high-calibre professionals while also shaping the next generation of young future leaders. Our new growth approach is led by the digital transformation of our operations, which will transform our company and ensure that we are future-ready.”

In 2016, Emaar recorded net profit of AED 5.233 billion (US$ 1.425 billion), and revenues of AED 15.540 billion (US$ 4.231 billion). Recurring revenues from Emaar’s shopping malls, hospitality, entertainment and leisure businesses was AED 5.976 billion (US$ 1.627 billion), 38 per cent of the total Group revenue. Emaar’s international operations reported revenue of AED 2.665 billion (US$ 726 million), 17 per cent of the total Group revenue.

The performance of Emaar’s real estate sales in Dubai recorded notable growth during 2016 at AED 14.4 billion (US$ 3.92 billion). Sales across various international markets in 2016 were valued at AED 3.9 billion (US$ 1.1 billion). The Group now has a backlog of AED 42.977 billion (US$ 11.701 billion) to be recognised in the next few years.

Emaar also strengthened its landbank, notably in Dubai, without capital investment through joint ventures and strategic partnerships. The company’s land bank in the UAE now stands at over 24 million sq m taking its total land bank across all markets to over 190 million sq m.

Robust growth of malls and hospitality

Emaar Malls (DFM: EMAARMALLS), the shopping malls & retail business majority-owned by Emaar Properties, recorded a net profit of AED 1.874 billion (US$ 510 million) and revenue of AED 3.227 billion (US$ 879 million) in 2016.

The shopping malls assets of Emaar Malls together welcomed 125 million visitors during 2016. The Dubai Mall continues to be the world’s most visited retail and leisure destination, having welcomed 80 million visitors per annum for the past three consecutive years.

The hospitality & leisure, commercial leasing and entertainment business of Emaar recorded revenues of AED 2.749 billion (US$ 748 million) in 2016. Average occupancy of hotels under Emaar Hospitality Group in Dubai was 85 per cent, higher than the industry average.

Emaar’s growth has been led by an overall improvement in productivity in all performance indicators. The company has introduced a new procurement approach that generates savings. Customer service satisfaction levels have also increased across all operations – real estate, malls, hospitality and entertainment.

Emaar is now developing The Tower in Dubai Creek Harbour, billed to be one of the fascinating attractions in the world. Emaar is also strengthening Dubai’s retail sector through new retail precincts in Dubai Creek Harbour and Dubai Hills Estate. Another smart development for the future is Emaar South in Dubai South, a next-generation lifestyle destination in the new aviation and logistics hub of the city, located near the venue of Expo 2020 Dubai.