Mubasher: Dubai-based billionaire Khalaf Al Habtoor revealed that he was considering expansion in sectors other than the hospitality market which is currently saturated.
“I would not recommend any expansion in hotels at all to anybody,” the chairman of Al Habtoor Group said in an interview with Bloomberg TV.
Business at Al Habtoor Group’s beach properties is growing, “but with very low rates” and the group’s hotel occupancy in Dubai is fluctuating and “the rates are not great,” he added.
He said he is currently considering whether to build or acquire between seven and 10 schools, in addition to building a specialised hospital with approximately 100 beds.
The Emirati mogul is also planning to fund the investments through a mix of debt and equity.
“There is an area which is doing very well. In education, we are doing very well.” Al Habtoor said.
He also called Dubai’s government to halt hotel development, including ongoing projects, as room rates are plunging due to the increasing supply.
“Nakheel is announcing 8,000 rooms. Why?” he said, adding “We have enough rooms -- I can give them rooms. I can give them rooms, 5,000 rooms.”
Al Habtoor has hotels in the UK, Austria, Hungary, and Lebanon along with his business in the UAE. His Group is also a distributor of Bentley, Bugatti, and Mitsubishi cars.
The tycoon noted his automotive business give him hope regarding the third-quarter financial results amid pressures on the economy.
