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The National
03-05-2025
- Business
- The National
Ras Al Khaimah's residential inventory expected to double by 2030
The residential stock in Ras Al Khaimah is forecast to double by the end of 2030 with more than 11,000 units scheduled for completion as the emirate experiences rapid growth across its tourism and real estate sectors, according to global real estate consultancy Savills. The projection is based on supply anticipated from property launches up to the end of 2024. The growth in tourism and property sales is being driven by rising visitor numbers, new residential project launches and ongoing investment in high-profile projects such as the Wynn Al Marjan Island, the UAE's first integrated resort to be granted a commercial gaming operator's licence, Savills said in a report. The UAE's first gaming resort is expected to boost visits to Ras Al Khaimah and attract travellers until now unaware of the emirate's offerings. The $5.1 billion Wynn Al Marjan Island resort in Ras Al Khaimah secured the country's first gaming licence from UAE authorities last year. Gambling remains prohibited in the Emirates, as it is across the Gulf, but the UAE set up the General Commercial Gaming Regulatory Authority to oversee and supervise commercial 'gaming activities'. These include lotteries, internet gaming, sports betting and integrated gaming centres or resorts. 'There is growing demand for premium residential offerings in RAK,' said Andrew Cummings, head of residential agency at Savills Middle East. 'Branded residences now make up 32 per cent of anticipated supply on Al Marjan Island, reflecting buyer appetite for well-located, lifestyle-led investments.' About 40 per cent of all new developments coming up in the emirate are branded residences, The RAK Investment Pulse report by Stirling Hospitality Advisors found. Wynn Al Marjan Island, scheduled to open in 2027, will have 1,530 rooms, 22 restaurants, a nightclub, salon, spa, designer boutiques, an events centre, several pools and a marina. 'When you think about Wynn, it is arguably one of the best luxury integrated resorts in the world. And to have that type of brand coming to a destination like ours is something that I think will end up being a great new contributor to the tourism ecosystem,' Raki Phillips, chief executive of Ras Al Khaimah Tourism Development Authority, told The National on the sidelines of the Arabian Travel Market in Dubai. Ras Al Khaimah is preparing for an influx of employees to run the multibillion dollar developments springing up in the emirate. The hospitality sector is expected to create more than 25,000 jobs by 2030, according to data from Stirling Hospitality Advisors consultancy. Off-plan sales dominated the Ras Al Khaimah market in 2024 and communities such as Al Marjan Island, Mina Al Arab, and Al Hamra have recorded an upwards trend in capital values and rents since 2022, coinciding with the Wynn announcement, the Savills report said. Sales transaction values were worth more than Dh11 billion ($2.99 billion) in 2024. Savills attributed this demand for real estate to the increase in visitor numbers. Ras Al Khaimah welcomed 1.28 million tourists in 2024, a 5.1 per cent annual increase, and aims to boost that figure to 3.5 million by 2030. Ras Al Khaimah International Airport recorded 661,765 arrivals last year, up 28 per cent annually, with that number estimated to exceed two million by the end of the decade. The emirate is also expanding its hospitality portfolio, which stood at about 55 hotels and resorts, with 8,211 rooms, as of March. The number of rooms in the emirate is set to double in the next few years, with more than 7,500 rooms added. The emirate aims to boost tourism's contribution to the economy to a third by 2035 and position itself as one of the top 10 fastest-growing global destinations. The strategy is expected to create many jobs in the industry, with the Wynn resort alone forecast to employ about 7,000 people. 'The arrival of Wynn Al Marjan will significantly benefit the entire emirate, becoming a strong pillar of the broader destination strategy,' Alison Grinnell, chief executive of RAKHH, told The National. 'The integrated resort will create extensive job opportunities and increase demand for hotel keys.' While reliant on Dubai for luxury and lifestyle amenities, RAK is quickly building its own offering. 'RAK's evolution is now beyond tourism alone,' said Rachael Kennerley, head of research at Savills Middle East. 'We're seeing the pieces come together, infrastructure, education, entertainment, and residential development, which together make a compelling case for long-term investment and growth.'
Zawya
06-03-2025
- Business
- Zawya
Stirling Hospitality Advisors anticipate hotel supply to double within two years amid unprecedented growth in Ras Al Khaimah
The Emirate's hotel pipeline will double by 2027, adding over 7,500 new keys with another 1,000 expected by 2030 Branded residences sector to expand significantly, with 16 projects set to deliver approximately 5,600 units by 2029 RAK's strategic vision aims for 3.5 million annual visitors by 2030, exceeding initial targets RAK, UAE – Stirling Hospitality Advisors, a leading boutique advisory firm in the region, has released the fourth edition of the RAK Investment Pulse report, highlighting the rapid growth of Ras Al Khaimah's hospitality and real estate sectors. The latest research showcases the Emirate's growing tourism sector, which has seen a robust increase in visitor numbers, a rapidly evolving hotel pipeline, and the emergence of branded residences as a key investment asset. With tourism at an all-time high, Ras Al Khaimah's hotel sector is poised for significant expansion. By 2027, the Emirate's total hotel inventory is expected to more than double, with 7,537 new rooms added to the existing 7,144, bringing the total to over 14,600. Notably, 71% of this pipeline falls within the five-star category, further cementing RAK's status as a premier luxury hospitality destination. The Emirate is set to welcome over 15 international hotel operators across all segments, from luxury to midscale. New entrants such as Wynn, Millennium, Radisson Red, Ushuaïa, and Rove Al Marjan underscore RAK's growing and diversified hospitality landscape. Providing valuable insights into market performance, supply trends, and investment opportunities, the report also highlights a shift in market leadership among hotel operators, with Accor surpassing Hilton in 2024 due to strategic rebranding initiatives. This transition was fueled by the conversion of Al Marjan Resort into Pullman and the rebranding of Hilton Beach Resort into Rixos Al Mairid, reflecting the Emirate's dynamic hospitality landscape and commitment to delivering world-class guest experiences. Meanwhile, Marriott is rapidly catching up – the operator currently has the largest pipeline in RAK with major developments like The Westin, W Al Marjan, and JW Marriott Al Marjan all scheduled to open by 2027. Commenting on the report's findings, Tatiana Veller, Managing Director of Stirling Hospitality Advisors, said: 'Ras Al Khaimah's hospitality sector is undergoing a remarkable transformation. The combination of strong government support, ambitious development plans, and the arrival of global hotel brands and investors is setting the stage for a new era of growth. Our latest edition of RAK Investment Pulse provides invaluable insights into these shifting dynamics, offering investors, operators, and developers a comprehensive guide to the opportunities that lie ahead.' The report also highlights the rapid expansion of branded residences, a segment gaining momentum in RAK's real estate market. While the Emirate currently has no operational branded residences, 16 projects are in development, set to introduce approximately 5,600 units by 2029. The majority (63%) of these projects are concentrated on Al Marjan Island, with the rest distributed across Al Hamra, Mina Al Arab, and the newly established Beach District. This surge is fueled by the entry of notable global brands such as Waldorf Astoria, JW Marriott Residences, Nobu, Nikki Beach, and Ritz-Carlton, as well as a selection of high-end fashion and lifestyle brands, reinforcing RAK's position as an emerging luxury investment hub. Ras Al Khaimah's tourism momentum continues to grow with no signs of slowing down. The Emirate welcomed 1.28 million overnight visitors in 2024, marking a 5.1% year-on-year increase. International visitors accounted for 76% of total guest nights, with growth stabilising at 4.3% following a sharp 24% surge in 2023. Despite this adjustment, Ras Al Khaimah is on track to exceed initial projections, with visitor numbers anticipated to reach 3.5 million by 2030, reflecting a robust compound annual growth rate of 19%. This sustained demand has led to a 14% rise in the Average Daily Rate (ADR), pushing RevPAR to AED 421. While occupancy rates adjusted slightly with a 2.4% year-on-year dip, this indicates a strategic shift towards attracting premium visitors over high-volume tourism. Additionally, the much-anticipated opening of Wynn Al Marjan Island in 2027, the region's first fully integrated resort, is set to be a transformative milestone for Ras Al Khaimah's hospitality sector. Expected to attract high-net-worth travellers, the resort will not only increase demand but also reshape the guest profile. As a result, the average number of guests per hotel room (double occupancy factor) is projected to shift from a typical family resort level of 2.5 to a more mature, luxury-driven range of 1.75–1.85. These dynamics are set to drive annual room night demand from 2.41 million to 4.28 million by 2027. Wynn's presence will not only elevate the Emirate's global appeal but also reinforce its position as a leading player in the luxury hospitality market. Looking ahead, the report highlights significant investment opportunities across various sectors in Ras Al Khaimah. While luxury properties remain dominant, there is a clear undersupply in the midscale, and upper midscale price segments, as well as extended-stay supply, presenting strong potential for investors in serviced apartments, lifestyle hotels, and family-friendly resorts. Furthermore, sectors such as residential, retail, F&B, staff accommodation, education, and healthcare are also primed for growth, further enhancing RAK's expanding tourism ecosystem. With supply and demand expected to remain balanced until 2025, additional hotel inventory will be needed from 2026 onwards to keep pace with rising visitor numbers. Forecasts indicate the Emirate could comfortably accommodate an additional 8,500 hotel rooms by 2030, reinforcing its long-term growth potential and attractiveness to investors. As a subsidiary of Ras Al Khaimah (RAK) Hospitality Holding, Stirling Hospitality Advisors asset-manages over 3,500 hotel rooms across multiple markets and oversees a USD 1.25 billion hospitality and resort portfolio. Fact Box: Register for the RAK Investment Pulse Webinar to learn more about RAK's hotel pipeline and future demand and supply gap by clicking on the link below. To join the webinar, please make sure you click 'attend' and sign up with us. -Ends- About Stirling Hospitality Advisors A subsidiary of Ras Al Khaimah (RAK) Hospitality Holding, Stirling Hospitality Advisors is one of the leading boutique advisory institutions in the region. Headquartered in RAK, Stirling Hospitality Advisors offers clients a wide range of services, including developing comprehensive tourism destination strategies and activation plans, advisory and asset management. Stirling Hospitality Advisors is responsible for a hotel and resort portfolio valued at over USD 1.25 billion, for clients across various sectors: governments, real estate investment trusts, sovereign wealth funds, banks, family offices and master developers. Holding a unique position in the industry, Stirling Hospitality Advisors shares the perspective of government, investor, owner, operator, asset manager and consultant, offering its' clients the long-term trusted relationships and focused expertise, and accompanying each project throughout its' entire lifecycle. With a proven track record of successful project delivery, it has been instrumental in transforming RAK into a world-renowned touristic destination for active and family tourism. Stirling Hospitality Advisors' team of experts has over 150 years of combined hospitality experience, currently asset managing over 3,500 hotel rooms in three countries and has supported clients in over 120 cases of hotel and destination concepts, feasibility studies, market studies, strategies and highest-best use analyses. For media enquiries: Natasha Tourish | Q Communications natasha.t@
