Recurring income lends stability to revenue: DHCOG’s businesses not related to property development (primarily hospitality and leasing) are fairly robust and provide the company with a relatively stable revenue stream (AED 6bn in 2011). This helps to offset the volatility of the real-estate segment.
The Jumeirah Group owns a strong portfolio of hotels in Dubai and also manages properties in London, New York, Shanghai, the Maldives, Frankfurt and Abu Dhabi; it plans to launch one hotel in Dubai and six internationally in 2012. The group reported a 5% increase in RevPAR in 2011, with average occupancy during the year at 74%.
Leased properties comprise TECOM’s business parks and some of DPG’s residential and commercial assets. These, together with the group’s facilities management services, contributed revenue of AED 2bn in 2011, up 6% y/y