Updated: Jun 5, 2019
February 24, 2019- Going Asset Light To create long-term value for shareholders.
While revealing its full-year 2018 financial results, Emaar’s hospitality & leisure, entertainment and commercial leasing businesses has confirmed its revenue of US$744 million.
According to an official statement, these businesses together recorded revenue of AED 2.734 billion ($744 million), in line with FY 2017 revenue of AED 2.722 billion ($741 million).
The operator also launched an investment project through Rove City Walk in 2018 – guest rooms were offered for sale with a revenue share arrangement. The launch saw a deal of AED 154 million ($42m).
As part of its strategy to be asset-light, in 2018, Emaar Hospitality Group signed with Abu Dhabi National Hotels to divest its entire economic interest in a portfolio of five hotels in Dubai. In 2018, Emaar claims that the group’s hotel brands – Address Hotels + Resorts, and Vida Hotels and Resorts recorded higher occupancy than Dubai’s industry average.
Overall, Emaar Properties reported a net profit of AED 7.216 billion ($1.965bn) in 2018, a 30% increase over the net profit of AED 5.561 billion ($1.514 billion) in 2017, before considering the effect of the IPO of Emaar Development and forex movement.
Emaar Properties chairman Mohamed Alabbar said in a statement: “Our strategy for 2018 was to launch and build premium real estate assets that gained strong investor response from regional and international markets. We also expanded our malls business to be relevant to changing customer aspirations, highlighted by the expansion of The Dubai Mall and the launch of Dubai Square. In the hospitality business, we aim to be asset-light and focus more on our operational strengths. With digital transformation and building an ownership mindset driving our growth, we will continue to create long-term value for our shareholders.”