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Condo market next big thing predicts RCI

Condominium hotels could be the next big thing to hit Dubai, predicts Preben Vestdam, president and CEO of timeshare exchange company RCI Europe and Middle East.

Condominium hotels could be the next big thing to hit Dubai, predicts Preben Vestdam, president and CEO of timeshare exchange company RCI Europe and Middle East.

Talking about the development of timeshare in the emirate, Vestdam claims that a natural synergy exists between the vacation ownership sector and the fast-growing real estate market.

“I think there will be several different vacation ownership models,” Vestdam told Hotelier Middle East. “One will be timeshare. Another will be fractional business and grand residence clubs, whereby people buy a quarter share or a month in a luxury residence. What is also going to be big is the condo hotel model. This is a business concept whereby you sell a whole unit to someone. The owner decides how much time they want to spend there on vacation, say 4-6 weeks, and then the management company rents out the rest of the inventory, splitting the profits with the owner 50/50.”

Condo hotels are a fast growing market in the US and Europe, where the tourism industry is more mature than that of the Middle East. However, Vestdam is confident that this model could work well here, and that RCI, through its parent company Cendat, could be the company to facilitate this.

“When you look at developments like The Palm villas, this could be a good model for Dubai. We can help those owners that have bought 10-20 units sell it on a condo model, and, through Cendant and Galileo, we can rent out the additional inventory,” Vestdam said.

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