{"id":619,"date":"2016-01-04T02:51:42","date_gmt":"2016-01-03T19:51:42","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=619"},"modified":"2016-01-04T00:04:59","modified_gmt":"2016-01-03T17:04:59","slug":"emaar-hotel-revenue-to-be-hit-after-dubai-fire-as-developer-appoints-contractor-to-restore-the-address","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-hotel-revenue-to-be-hit-after-dubai-fire-as-developer-appoints-contractor-to-restore-the-address\/","title":{"rendered":"Emaar hotel revenue to be hit after Dubai fire as developer appoints contractor to restore The Address"},"content":{"rendered":"


\n
\nInvestors yesterday shrugged off worries over the long-term effect on Emaar Properties\u2019 outlook from the fire that broke out at its Address Downtown Dubai hotel on New Year\u2019s Eve. Emaar\u2019s share price pared losses in Dubai yesterday to end the session down 1.58 per cent, after slumping 4.4 per cent at the opening. It dragged down the Dubai Financial Market General Index 0.51 per cent on the day. Authorities are still investigating the cause of the fire that engulfed the 63-storey tower. The hotel will be closed for an indefinite period. There were no fatalities.
\nEmaar\u2019s shares recovered in late morning trade yesterday after Dubai\u2019s biggest listed property developer said there would be \u201cno material effect on the company\u201d from the hotel fire because \u201cthe building and risk of fire are covered by insurance\u201d, in a statement to the exchange. The company didn\u2019t quantify the financial impact on its hotel revenues following the closure of its luxury hotel. But the Dubai-based financial services company Arqaam Capital said that Emaar\u2019s hotel revenue is forecast to decline by 13 per cent this year, compared with last year, to Dh1.4 billion because of the closure. Based on the new forecasts Arqaam expects total group revenue this year to rise by 29 per cent to Dh17.8bn compared to its previous estimate of a 31 per cent year-on-year increase in 2016. Arqaam is \u201cassuming disrupted operations of 12 months \u2026 for necessary refurbishment-rebuild works\u201d.
\nEmaar said yesterday it had hired Dubai-based Dutco Group as the contractor to undertake restoration work on the 63-storey Address hotel \u201cin record time\u201d. Emaar\u2019s chairman, Mohamed Alabbar, said: \u201cTo achieve our timelines, we will leverage all our resources and our proven track record of delivering iconic projects. Every aspect of the workflow will be clearly streamlined and we will deploy the latest technology tools to ensure that we meet our time frame.\u201d
\nSebastien Henin, the head of asset management at TNI, The National Investor, in Abu Dhabi, said that Emaar\u2019s status as one of the blue chips of the market and its appeal to institutional investors should minimise any effect on its share price going forward. \u201cThe financial effect for Emaar is pretty limited, so I think investors have understood that properly and that\u2019s why we haven\u2019t seen a kind of overreaction [in the stock market],\u201d he said.
\nEmaar\u2019s weighting accounts for 18.68 per cent of the Dubai Financial Market benchmark index. Shareholders, speaking on the trading floor of the Dubai exchange yesterday, supported Mr Henin\u2019s view.\u201cI don\u2019t think [the fire] will affect the company\u2019s profits,\u201d said Abdulkarim Al Kassem, a Saudi national and an Emaar shareholder. \u201cIt is still a strong company and has strong revenues. It is an attractive stock to buy based on its future earnings.\u201d
\nHussain Al Qatari, a Bahraini investor in Emaar, said it is \u201cthe best company in the market\u201d. He said: \u201cIt is a strong company and has excellent assets even if they incur losses [from the fire].\u201d There has been speculation in the past that Emaar\u2019s hotel business, which also includes the Vida and Armani brands, could be the next to be spun off after the IPO of its malls unit in 2014. However, any aspiration to list this unit, or expand the Address chain of hotels, may in the short term be affected, according to analysts.
\n\u201cThe effect will be reputational on how its hotel business evolves going forward because we know they have ambitions to list the hotel business,\u201d said Muhammad Shabbir, the head of equity funds and portfolios at Rasmala Investment Bank in Dubai. \u201cIt may be a short term negative effect on that.\u201dEmaar\u2019s shares ended last year at Dh5.69, down 20 per cent since the start of the year and 45 per cent below their highs in autumn 2014, when the oil price slump began to weigh on many Dubai companies.
\nThe group\u2019s revenue from hotels in the first nine months of this year accounted for 12 per cent of total revenue.Its third quarter net profit rose 31 per cent to Dh843 million as rising property sales overcame the wider real estate market malaise. The results missed analyst expectations, however.dalsaadi@thenational.aeFollow The National\u2019s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Emaar hotel revenue to be hit after Dubai fire as developer appoints contractor to restore The Address<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Investors yesterday shrugged off worries over the long-term effect on Emaar Properties\u2019 outlook from...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-619","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9Z","jetpack-related-posts":[{"id":4319,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-reports-full-year-gains-despite-the-address-downtown-dubai-blaze-writedown\/","url_meta":{"origin":619,"position":0},"title":"Emaar reports full-year gains despite The Address Downtown Dubai blaze writedown","date":"February 11, 2016","format":false,"excerpt":"\r \r Emaar Properties posted fourth-quarter results that missed expectations after a Dh301 million writedown arising from the New Year's Eve, blaze at its flagship hotel in Dubai. Net profit in the three months to December 31 was Dh1.03 billion, a 1 per cent drop from a year earlier, the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4321,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-earnings-hit-by-the-address-downtown-dubai-blaze-writedown\/","url_meta":{"origin":619,"position":1},"title":"Emaar earnings hit by The Address Downtown Dubai blaze writedown","date":"February 11, 2016","format":false,"excerpt":"\r \r Emaar Properties posted fourth-quarter results that missed expectations after a Dh301 million writedown arising from the New Year's Eve, blaze at its flagship hotel in Dubai. Net profit in the three months to December 31 was Dh1.03 billion, a 1 per cent drop from a year earlier, the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":505,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-developer-emaar-says-no-material-impact-on-company-after-the-address-fire\/","url_meta":{"origin":619,"position":2},"title":"Dubai developer Emaar says ‘no material impact’ on company after The Address fire","date":"January 3, 2016","format":false,"excerpt":"\r \r Emaar Properties said there would be \u2018no material impact\u2019 on the company following the fire at The Address Downtown in Dubai.The blaze, which happened on New Year\u2019s Eve just before the city\u2019s firework display, engulfed the 63-storey luxury hotel and residential tower. The flames In a statement to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":621,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-says-no-material-impact-on-company-after-the-address-fire\/","url_meta":{"origin":619,"position":3},"title":"Emaar says ‘no material impact’ on company after The Address fire","date":"January 3, 2016","format":false,"excerpt":"\r \r Emaar Properties said there would be \u2018no material impact\u2019 on the company following the fire at The Address Downtown in Dubai.The blaze, which happened on New Year\u2019s Eve just before the city\u2019s firework display, engulfed the 63-storey luxury hotel and residential tower. The flames were extinguished on Saturday.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":577,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-shares-tumble-in-first-day-trading-since-the-address-fire-in-dubai\/","url_meta":{"origin":619,"position":4},"title":"Emaar shares tumble in first day trading since The Address fire in Dubai","date":"January 2, 2016","format":false,"excerpt":"\r \r The UAE\u2019s stock markets were down as they opened for the first time in 2016.The Dubai Financial Market General Index opened the year 1.0 per cent lower while the Abu Dhabi Securities Exchange General Index had fallen 0.7 per cent as of noon.The kickoff of trading for 2016\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46869,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/emaar-chairman-hopes-for-better-year-after-tough-2016-for-dubai-developer\/","url_meta":{"origin":619,"position":5},"title":"Emaar chairman hopes for better year after tough 2016 for Dubai developer","date":"March 6, 2017","format":false,"excerpt":"\r Mohamed Alabbar, chairman of Dubai's largest listed real estate developer, Emaar Properties, said on Monday he was hoping for a better year after a tough 2016.The Arabian Gulf construction sector has slowed since mid-2014 after the slump in global oil prices forced governments to rein in spending.\"We hope 2017\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/619"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=619"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/619\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}