Palazzo Versace Hotel Dubai : The project was initially launched in 2008 when the financial crisis was at its peak in Dubai but the developer has pulled through and handing over the units now.
Palazzo Versace Hotel Dubai
D1 Tower (Residential)
Palazzo Versace Dubai (Hotel)
|80 Floors||10 Floors|
|528 Units||169 Units|
In late 2008, when the Palazzo Versace Hotel Dubai was announced for the first time, it had made headlines all over the world because of financial crisis in Dubai at that time. The initial plan was for a residential tower and a resort with refrigerated beach.
The idea was to introduce such beach system where the beach goers will not have to burn their feet on hot sand due to humid and warm weather of UAE. A system that used pipes that would absorb heat under the sand was to be used in the project.
As claimed by the developer, top people wanted this kind of luxury but environmentalists didn’t agree with that. At that time, many tourism concern groups and environmental groups around the world raised issues by saying that Dubai is turning into a bubble world where things are being produced artificially and of course this is not good for environment at all. Due to such pressure, refrigerate beach project was dropped by the developer for Palazzo Versace Hotel Dubai.
Now in 2015, the developer Enshaa that is behind is DH2.3 billion project has finally started the process of units handover and as stated by the developer, property will open its gates very soon for the owners and public.
Raza Jafar, the CEO of Enshaa said in an interview that his partner in this project had that vision to provide such unique beach to the people. However, he has been fighting at three different ends since last two years; social, environmental and economic.
The developer didn’t think that the refrigerated beach for Palazzo Versace Hotel Dubai was a good idea from environmental point of view so they dropped it. Now, the project has a small beach but it is not air conditioned as initially proposed in the project inauguration.
In 2011, Enshaa backtracked from the beach project and tool full control of the Palazzo Versace Hotel Dubai construction/ developement. However, the developer had to relinquish its stake in a finished project “Australian Hotel” at that time.
Palazzo Versace Gold Coast’s 100 percent ownership was transferred to Sunland Group that was joint venture partner of Enshaa at that time. The firm owned 51 percent share in Palazzo Versace Hotel Dubai and 50 percent share in D1 Tower associated with the resort, which they agreed to let go in order to take full ownership of Australian Hotel which had opened in Dubai in 2000.
While developer has been far behind on the schedule, still the hand over process for Palazzo Versace Hotel Dubai residence and D1 Tower has started. D1 Tower is a 80 story building consisting of 518 apartments. Developer claims that the apartments in D1 Tower are a mix of latest ultra rich living experience and Middle Eastern heritage. A good demand has been seen for D1 Tower since the time of inauguration. Finally, the apartments that will offer a high level of living experience to their owners are being handed over now.
The procedure for handover has started and owners are gradually taking up the possession of units and moving in as well. The developer told, many residents have moved in already and other are also in line. The developer is taking it at a steady pace by delivering to four customers a day which doesn’t necessarily means that the number of units handed over are also four per day because many people own more than one units in Palazzo Versace Hotel Dubai project. The developer feels proud to have used their time constructively while they were waiting for infrastructure to be made available by Government authorities.
In 2011, when Enshaa and Sunland were splitting up, Soheil Abedian, Managing Director or the Australian firm had accepted the fact project had started its construction in a difficult economic time. It was not easy to secure project finance due to strict economic situation and downfall in pricing of Dubai real estate properties. Enshaa CEO also accepted that the developer had to compensate many customers because of the delay which was another economical hit for the company.
During all these years, the developer tried to keep its customers updated about the delays and progress on project. The main reason for the delays, as per the developer, has been unavailability of infrastructure near the under-construction project of Palazzo Versace Hotel Dubai so there was no major compensation for any customer during all these years.
Even now, when you visit Palazzo Versace Hotel Dubai, there is no paved road access. The road, of course is under construction at the moment and it can take up to six to twelve more weeks. The developer is hoping for the road pavement work to complete on time. On the other hand, there is no electricity at the moment. Since the inception of the project, developer has been running the building on its own generated power.
While developer believes, most of the delays have been because of infrastructure, they don’t think any government authority is responsible for that as they have their own priorities. The city is growing at an exponential rate at the moment and infrastructure changing is happening everywhere as well. As told by the authorities, the developer is hopeful that road construction work near Palazzo Versace Hotel Dubai will be completed within six to twelve weeks now. Once the infrastructure work has completed, the developer plans to have a soft opening for the project.
The project is finally moving towards final completion phase and this gives the developer an opportunity to look back at time and analyze the mistakes they made while working on Palazzo Versace Hotel Dubai. The developer expressed that they have learned some very important lessons from this project.
The number one lesson is to start the delivery of project on time because small financial losses can be overlooked in business but credibility is the most important thing. Another lessons learnt by the developer is the vulnerability of pre-sales process experienced in building Palazzo Versace Hotel Dubai as off-plan projects need continuous funds injection and if investor’s fail to make their payments on time, it causes a lot of issues for developer. The third lesson that developer claims to learn is to never start a project in a community where proper infrastructure is not available.
The developer aims to have learnt lessons from Palazzo Versace Hotel Dubai experience and holds its ambitions high as they plan to developer nearly a dozen more Palazzo Versace hotels around the world. The developer is currently exploring Asia and Europe for a possible new Palazzo Versace hotel. Jafar said, “Our aim is to have at least ten more hotels around the world under same brand name, managed by Enshaa.
The developer is focusing on two major areas of construction business that are residential projects and hospitality projects. As the handover procedure of residential project is coming to an end, the same process for hotel project is going to be initiated. The main focus of developer, at the moment, is to ensure that the service and quality of hotel lives up to the expectations of clients.
Enshaa’s business is not just limited to partnership with Versace but the group also owns Capital Club Dubai. It’s a private members club in Dubai and was opened in Dubai financial district in 2008. Capital Club Dubai is a highly prestigious club as it doesn’t offer membership to just anyone, one has to be invited to get a membership in the club. The club is limited to only 1,500 members.
The CEO of the group takes high pride in their Capital Club brand and plan to open 25 more such clubs worldwide. Apart from expanding Palazzo Versace Hotel Dubai brand across the globe, the developer wants to have its Capitals Club’s presence everywhere as well because this plays a vital role in their hospitality market. The developer is currently working with Italian power house and has no plans to partner with any other fashion brand.
Italian power house is not just a fashion brand but it offers a complete home collection and has been around in the industry for three decades now. Enshaa believes in offering such products that are high in quality and partnering with any other fashion brand can jeopardize the quality of service that club members get.
Finally, Plazzo Versace Dubai is ready to open its gates for owners in a few weeks despite so many delays in past. The developer claims that their project has been very successful in attracting buyers since the beginning as out of 528 units in D1 Tower, only 25-30 are unsold at the moment and similarly from 169 units in Plazzo Versace Dubai only 15 or 16 are left.
The luxury residential market has also seen a decline due to current market softening across Dubai. The same is the case with D1 Tower. The hospitality sector on the other hand has been performing very well and in July, hotels in Dubai recorded a high rate of occupancy which is a very good news.
Hospitality industry is picking up very well at the moment and by the time, Palazzo Versace Hotel Dubai will open its gates for public, there will be more people visiting Dubai which is a good sign. The hospitality management team of developer has a lot of experience as they have been managing Palazzo Versace Gold Coast for a long time. The team with its management has been on the ground of Palazzo Versace Hotel Dubai to ensure that every aspect of the project can meet with the demands and expectations of clients. The developer also emphasized on the difference between Gold Coast and Dubai’s market and believes that their hotel project in Dubai will start generating more profits as compared to the earlier operating project in Gold Coast.
Heinrich Morio who is the former general manager at Burj Al Arab, left his position last year to take up the same management position for Palazzo Versace Hotel Dubai.
A lot of things have been improved to add more wow factor in the finished project. A carpet was to be placed in the hotel lobby which was designed by Versace but since developer had more time due to delays, they decided to convert that carpet into small and beautiful pieces of mosaic art. Things like these will be the most highlighted points of Palazzo Versace Hotel Dubai, developer believes.
While there will be no refrigerated beach in the project but still the project could make headlines in UAE real estate market due to its state of the art finish and infrastructure. Palazzo Versace Hotel Dubai could possibly be the most anticipated project for year 2015 as well.