Jumeirah Group has reported increases in revenues and earnings in 2013, with its major source markets, the UK and Russia, delivering strong growth.
Ahead of next week’s Arabian Hotel Investment Conference (AHIC), the company has reported that consolidated group revenues grew by 8%, while total revenues under management went up by 11%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 8%, while occupancy and average room rates across the company’s owned and leased portfolio grew by 5%. Revenue per available room (RevPAR) grew by 11%
Jumeirah Group president and CEO Gerald Lawless said: “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 company added that all its 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.
The UK continued 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 remained the largest source of revenue, rising by 11.7% in 2013 compared to 2012 and accounting for 16% of the company’s revenues.
Elsewhere, the Kingdom of Saudi Arabia registered an increase of 33% in business, while Chinese business grew by 32% and Australia by 70%, driven by the partnership between Qantas and Emirates Airline.
Commenting on the company’s outlook for 2014, Lawless added: “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.”
In comparison to its competitors, Jumeirah claims its hotels grew their market share in 2013, with several notable performers including: Jumeirah at Etihad Towers in Abu Dhabi, which increased its share by 88%; Jumeirah Dhevanafushi in the Maldives, up 83%; Grosvenor House Apartments by Jumeirah Living in London, up 51%; and Jumeirah Himalayas Hotel in Shanghai, up almost 17%.
The company added that its eight hotels in Europe enjoyed a “strong year” in 2013, while its first hotel in China, Jumeirah Himalayas Hotel in Shanghai, grew its market share. It 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 and 2017.
Jumeirah’s pipeline also includes hotels it will operate in St Petersburg, Russia and on the coast of Oman near Muscat. Both are scheduled to open in 2016. The company also signed letters of understanding in the Middle East, Asia, Africa and Europe during 2013 and is expecting them to mature into management agreements in 2014.
In the UAE, it recently started construction work on a 435-room luxury beachfront hotel to complete the Madinat Jumeirah resort. This is expected to open in early 2016.
Detailing its 2013 performance, Jumeirah also highlighted its digital marketing efforts, with its YouTube channel enjoyed almost 10 million views in 2013. Its 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 itself 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.