Damac Properties plans to develop almost 8,000 luxury serviced hotel apartments to cater for an expected influx of tourists to Dubai.
The emirate is hoping to attract 20 million visitors by 2020 and Damac executives have calculated that if increases continue at current rates, hotel capacity could be reached within three years.
At present the number of hotel rooms catering to tourists in the emirate is about 80,000.
Damac plans to build about 8.2 million square feet of serviced apartments over the period to help to plug the shortfall. "Even with more hotels coming online in the next few years, Dubai's exponential growth as an attractive global tourist and business destination will see demand exceed supply by 2016," said Ziad El Chaar, the managing director of Damac Properties.
"The luxury serviced hotel apartments sector is currently underserved, despite a huge desire for visitors to experience five-star services in the comfort of their own homes."
Handover of The Signature, the first of Damac's hotel apartments, began last month. The project, a 355-apartment building in the Burj Khalifa area, will be run by Damac Maison, the company's luxury management and services arm.
Other projects due to be completed this year include Capital Bay, Water's Edge and The Cosmopolitan. The Distinction, Upper Crest, Bay's Edge and Damac Towers by Paramount are scheduled to open by 2016.
"In just three years, 2016, Dubai will see a year that will reinforce Dubai's position as a global leader for luxurious hospitality, stunning real estate and unrivalled opportunities," said Mr El Chaar.
"Luxury serviced apartments offer not only an ideal family living experience, but also a smart strategic investment."
Damac Properties has completed almost 8,900 units to date spanning more than 9 million sq ft. It has more than 19,100 units at various stages of construction across the Middle East covering more than 23.8 million sq ft. Nearly 5,200 units are expected to be completed this year.