FIN 4023- Real Estate Finance

Market Valuation of Real Estate Property in UAE

Saadiyat Rotana Resort &

Saadiyat Rotana Resort & Villas is situated on a fascinating 9-kilometer stretch of beautiful
white sand on Abu Dhabi's Saadiyat Island. It is a five-star hotel. It has a splendid presence, as
well as wonderful modern Arabic architecture and panoramic views of the Arabian Gulf. The
hotel has 327 rooms and suites, as well as 13 beach villas, all of which are designed uniquely. It
has a variety of accommodation options, including Club Rotana executive rooms that come with
additional features and individualized service. It has seven contemporary dining options that
assure fresh ingredients, authentic flavors, and novel cuisine experiences.

It has three properly equipped catering and event rooms, a luxurious ballroom, as well as The
Lawn, a magnificent outdoor event venue. The hotel offers excellent opportunities for recreation.
It has a modern gym, Zen the spa at Rotana, which offers Turkish and Moroccan Hammams and
10 sauna. It also has a modern gym, Bodylines Fitness Club. There's an outdoor pool, two tennis
courts, mini golf, and a beach club on the premises. The children's club, Aladdin's Cave, features
a lazy river, splash pool, movie zone, water park, and more. The hotel has a gift shop and beauty
&hair salon. There is currency exchange and ATM machines as well as car and limousine rental
services. The hotel offers express laundry and dry-cleaning services. There are 300 parking
spaces available in the hotel basement free for all guests.

Target market

The target market of Saadiyat Rotana Resort & Villas focuses on high income customers from
Emirati and non-Emirati guests from both genders who can afford paying for the high costs of
the hotel. Saadiyat Rotana Resort & Villas target customers from all nationalities whether they
are individuals, families or belonging to organizations who are looking for spending wonderful
vacations at more comfortable and luxury hotel. In more details, the target market of Saadiyat
Rotana Resort & Villas can be classified into the following three categories.

1. Individuals and corporate customers.

The customers are from both genders and form all ages like young, middle-aged, and elderly
who have high income to pay for luxury hotel.

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Market area

Saadiyat Rotana Resort & Villas is located at Abu Dhabi's Saadiyat Island. The hotel doesn’t
only target customers who are found in the UAE and the GCC countries but also it targets
customers from all over the world. The customers of Saadiyat Rotana Resort & Villas are found
in the UAE and all countries around the world. Saadiyat Rotana Resort & Villas doesn’t only
promote its services in the UAE but also in foreign countries to attract foreign guests and
travelers from around the world to come to enjoy their vacations and holidays at Luxury resort.
The market area of Saadiyat Rotana Resort & Villas is very large and it extends to involve all
areas worldwide.

What the customers care about

The customers of Saadiyat Rotana Resort & Villas care about many things in the hotel. The
number of stars and the services provided. Customers are looking for five star hotel since it is
expected to provide high quality five-star services. The customers are expected to find luxury
hotel and friendly hotel staff who is capable for providing high quality services and treating them
as very important persons (VIP). The customers care about the facilities that are found in the
hotel from having fully-equipped room that has all things that guests are in need for besides
having attractive views to enjoy the beauty of nature. The customers are looking for finding
restaurants that serve delicious meals besides bars that serve all kinds of drinks. The customers
also care about the swimming pools and beautiful clear beaches that can amuse them. The
customers are looking for gyms where they can do sport exercises. The customers care about the
indoor and the outdoor activities that the hotel present for them. Moreover, the customers care
about the cleanness services provided for their room and everywhere in the hotel. Furthermore,
the customers care about transportation and the easiness of accessing the hotel and nearby tourist
attractions that the customers are expected to visit during their stay in the hotel. The customers
would like to find easy transportation from the airport to the hotel and from the hotel to the
nearby tourist attraction. Finally, the guests of the hotel care about the comfortable and peaceful
environment where they can relax and enjoy their time and their holidays.

Competitors

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Varied hotels and resorts are found at Saadiyat Island and its neighboring areas. The three main
competitors of Saadiyat Rotana Resort & Villas are St. Regis Saadiyat Island Resort, Jumeirah at
Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas. They are chain hotels and
they are very popular hotels in the UAE and in other countries. The competitors are five-star
hotels that are competing highly to win the market. They have different prices. St. Regis
Saadiyat Island Resort is the most expensive hotel and it is rated to be number one hotel at
Saadiyat Island. Jumeirah at Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas
charges their guests nearly similar prices like Saadiyat Rotana Resort & Villas. The competitors
are competing in introducing high quality hostility services in order to attract more guests to use
their services. The market is very competitive and it is necessary to develop effective marketing
strategies in order to compete successfully in the competitive market.

Primary source of data collection

The initial data is collected through the use of secondary data and primary data. The primary data
is collected through the use of online survey. An online survey was developed in Google Forms
and it was distributed among 50 customers who use the services of Saadiyat Rotana Resort &
Villas. Demographic questions are asked to know about the demographic of the customers who
prefer using the services of Saadiyat Rotana Resort & Villas. The customers are also asked about
their opinions about the services provided and what they like to found in the hotel. The results
that we could reach from carrying out the survey are shown below.

Data analysis from primary source

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The above graph shows about the age of the participant customers. It is shown that the majority
of 48% of the participants are in the age group between 20 and 30 years old. 26% of the
participants are found to be in the age group between 31 and 40 years old. The participants above
40 years old occupies only 14% while the participants under 20 years old occupies only 12% of
the total participants.

The above graph shows the gender of the participant customers. It is shown that shown that 56%
of the participants are males while 44% of the participants are females.

The above graph shows about the nationalities of the participant customers. It is shown that 54%
of the participants are from non-UAE nationals while 46% of the participants are from UAE
nationals.

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The above graph shows the number of people that the participant customers live with. The
majority of 52% of the customers live with 2 persons. 22% of the customers live with 3 persons.
16% of the customers live with 1 person. 10% of the customers live with 4 and above persons.

The above graph shows about the income and the salaries of the participant customers. It is
shown that the salaries of 50% of the customers are between 20,000 and 30,000AED. It is also
shown that the salaries of 28% of the participants are between 10,000 and 20,000 AED.
Moreover, it is shown that the salaries of 16% of the participants are above 30,000 AED.

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The graph shows about the opinions of the customers about the food and beverage offered at
Saadiyat Rotana Resort & Villas. The majority of 48% of the customers state that the food and
beverage offered at Saadiyat Rotana Resort & Villas is excellent. 38% of the customers state that
the food and beverage offered at Saadiyat Rotana Resort & Villas is good.

The graph shows about the opinions of the customers about the menu variety at Saadiyat Rotana
Resort & Villas. The majority of 82% of the customers state that the menu variety at Saadiyat
Rotana Resort & Villas is excellent. 16% of the customers state that the menu variety at Saadiyat
Rotana Resort & Villas is good.

The graph shows about the opinions of the customers about value for price paid at Saadiyat
Rotana Resort & Villas. The majority of 78% of the customers state that value for price paid at
Saadiyat Rotana Resort & Villas is excellent. 20% of the customers state that the value for price
paid at Saadiyat Rotana Resort & Villas is good.

Secondary source of data

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The secondary data is collected through reviewing the published data to know about the hotel
industry in the UAE and whether it is working in better ways and whether there is good
opportunity in the market for hotels like Saadiyat Rotana Resort & Villas to grow in the market
and to achieve more revenues and profits. Some major findings could be reached from
conducting the secondary data. It is found that the hospitality industry is growing in the UAE
despite it has been affected by COVID-19 and the restrictions on travelling (Mordor Intelligence,
2022).

The UAE's strategic location, rapidly expanding world-class airlines, and excellent transportation
system have all contributed to the country's tourism rapid growth. The UAE is only an eight-hour
flight away for two-thirds of the world's population. Emirates and Etihad Airways are two
international airlines that provide world-class international travel to nearly all countries around
the world. They are increasingly important drivers of the country's tourism sector's expansion.
The UAE has witnessed quick and sustained growth over the last decade by reinforcing its
tourism sector (Mordor Intelligence, 2022).

The UAE's economic diversification strategy has sustained leisure facilities to become major
player in the UAE economy. Leisure facilities have aided in the attraction of global hospitality
big players to the country. In the meantime, the domestic hospitality groups DAMAC, Emaar,
Jumeirah, and Rotana could grow their businesses quickly in the country. The tourism and
hospitality industry has grown at a rapid pace between 2007 and 2017. Its participation to the
country's gross domestic product has risen by 138 percent. Over the same time period, sectoral
employment has increased by 119%. Dubai Expo 2020 is expected to attract even more visitors
to the UAE. The tourism sector is expected to grow between 2022 and 2027 (Mordor
Intelligence, 2022).

Refining the Research

The research is refined through conducting a number of survey questions in order to be able to
take the decision whether to invest in Saadiyat Rotana Resort & Villas or not. The results that we
could reach from refining the research are as follow.

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The above figure shows the preferred type of accommodation on holidays. The majority of the
participants of 36% state that they prefer resorts. 28% of the participants state that they prefer
caravans. 20% of the participants state that they prefer hotels.

The above figure shows about the top three features that attract customers to Saadiyat Rotana
Resort & Villas. VIP treatment is found to be the first top feature that attract customers to
Saadiyat Rotana Resort & Villas. The view of the hotel is the second feature that attract
customers to Saadiyat Rotana Resort & Villas. High quality hospitality service is the third
feature that attract customers to Saadiyat Rotana Resort & Villas.

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The graph shows the top three amenities that the customers would like to found in the ideal hotel.
Restaurant is the first top amenity that the customers would like to found in the ideal hotel. The
gym is the second amenity that the customers would like to found in the ideal hotel. The terrace
is the third amenity that the customers would like to found in the ideal hotel.

The graph shows whether the customers are going to recommend Saadiyat Rotana Resort &
Villas for others or not. The majority of 90% of the customers state that they are going to
recommend Saadiyat Rotana Resort & Villas for others.

Final Market Analysis

The primary source and the secondary source of data collection as well as refining the research
could give us most important information about the market analysis of at Saadiyat Rotana Resort
& Villas. The customers of at Saadiyat Rotana Resort & Villas are from different ages from male

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and female UAE nationals and non-UAE nationals. The majority of the customers prefer resorts
to be the type of accommodation on holidays. The VIP treatment, the view of the hotel and the
high quality hospitality services are the three top features most attract you to Saadiyat Rotana
Resort & Villas. The restaurant, gym and terrace are the three top amenities that the customers
would like to find in the ideal hotel and they are all found at Saadiyat Rotana Resort & Villas.
The customers state that food and beverage, menu variety and value for price paid at Saadiyat
Rotana Resort & Villas are excellent. The customers also state that they are going to recommend
the hotel to their relatives and friends. Moreover, the travel and tourism sector is growing in the
UAE and more visitors are expected to come to visit the UAE in the following years. All of these
reasons make Saadiyat Rotana Resort & Villas to invest it.

References

Mordor Intelligence. (2022). Hospitality Industry in the United Arab Emirates - Growth,
Trends, Covid-19 Impact, and Forecasts (2022 - 2027). Retrieved February 20, 2022 from:
https://www.mordorintelligence.com/industry-reports/hospitality-industry-in-the-united-arab-
emirates

Saadiyat Rotana Resort & Villas. (2022). Retrieved February 18, 2022 from:
https://www.rotana.com/rotanahotelandresorts/unitedarabemirates/abudhabi/
saadiyatrotanaresortandvillas

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