Developer Pitches Serviced Apartment RouteTuesday, June 01, 2010
 With diminished rental yields in the residential market and continuing supply of inventory unlikely to improve this scenario, serviced apartments with hotel amenities are an alternative being pitched to investors. With the hospitality sector showing more promise than the residential property market, developers are offering short-term rental schemes for investors interested in capitalising on the leisure and business travel markets. IFA Hotel and Resorts (IFA HR) is no stranger to the market, with projects in Dubai and across the world firmly positioned in the residential-leisure segment. With resort-style developments in prime holiday areas, its portfolio is vast — from game farms in South Africa to beachside resorts in Thailand and serviced apartments on Palm Jumeirah.
The developer's latest venture, a hotel-residential tower in Jumeirah Lakes Towers (JLT) is a slight departure from the norm. Investors in Laguna Tower's have two options.
Purchase an apartment and do what they want with it, or convert it into a serviced unit that can be leased to the Mövenpick hotel, which will also occupy the building. Situated in the construction heavy southern end of JLT, currently Laguna Tower is unlikely to appeal to the leisure market. Nonetheless, it is close to the free zone's business centre, Almas Tower — home to the Dubai Multi Commodities Centre — and is well positioned to attract business travellers. Its only competitor is the recently opened Bonnington hotel.
With the building still in the process of being completed, IFA HR has opened two display apartments with an eye to generating more sales prior to phased handovers which will begin at the end of Q3 this year. The hotel's facilities will start coming online between Q4 2010 and Q1 2011.Source: Gulf News
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