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It was a dumbfounded journalist who said that Burj Al Arab Jumeirah was a seven-star hotel when it opened, or so the story goes.

More than two decades on, writers, VIPs, celebrities and dignitaries have again been dazzled by a new Dubai hotel, this time by Atlantis The Royal.

And again, here is a dumbfounded journalist writing that Dubai has opened a hotel far beyond the realms of five-star hospitality. Kerzner International’s Atlantis The Royal is the city’s crowning jewel of modern hospitality.

That is why I’m saying it is time to officially introduce a six-star rating and give it to Atlantis The Royal.

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Atlantis The Royal has no equal

Many hotels are luxurious, other hotels have plenty of celebrity-stamped restaurants, lots are frequented by socialites and rockstars, but none have done so on the scale of Atlantis The Royal’s Grand Reveal.

Dubbed the world’s largest ultra-luxury resort, Atlantis The Royal is a self-proclaimed “juggernaut” of the global hotel sector. It has 795 rooms, 90 pools, eight celebrity restaurants and two kilometres of private beach.

A celebrity hotspot

One distinguishing factor between the top hotels of Dubai and the rest of the world is often heritage, history and prestige. Opened in 1907, The Plaza in Manhattan is legendary, frequently appearing in film and pop culture. The property is an icon of New York and has welcomed the most famous people in the world each decade it has been open.

Atlantis The Royal has pretty much managed the same, in a single weekend. During last weekend’s Grand Reveal Party. It welcomed HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, Beyoncé, Kendall Jenner and many more.

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A key part of tourism

Atlantis The Royal’s opening came days after the announcement of Dubai’s new $8.7 trillion economic plan. It also comes in the wake of the UAE Tourism Strategy 2031, which eyes 40 million annual hotel guests.

The Strategy eyes an annual increase of AED27 billion ($7 million), attracting new investments of AED100 billion ($27 billion) to the tourism sector in the country.

This hotel will play a vital role in the country’s ongoing tourism efforts, along with its hopes to boost the national economy.

A six-star classification would propel the hotel into the international conversation again, and help Dubai officials reinforce the emirate’s place as a superpower in luxury and hospitality.

A class of its own

At the moment, hotels do not go above five stars, in Dubai or anywhere else. But that doesn’t mean the city can’t create a six-star classification should it want to. For example, at the end of 2021, Dubai Tourism introduced a new star rating system for wellness resorts. Classifications are also given out to define boutique hotels.

Not only would making Atlantis The Royal a six-star hotel be a recognition of its impact on global tourism, but it would also showcase to the world the pioneering efforts of Dubai in leading the way to redefining what luxury looks like for the next decade.

Moreover, if Dubai Tourism were to pen official guidelines on how to become a six-star hotel, it would push the wider industry to strive for the same. There are around a dozen Dubai hotels I can think of that would revel at the chance to be put into the new classification (and could realistically do it), able to command higher rates because of it and attract deep-pocketed curious tourists from around the world.

As the resort’s marketing and PR VP Hanan Eissa put it: “This is the place you’ll get everything you ever wanted and everything you didn’t know you wanted. Everything you’ll ever dream about is here, in one place.”

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Dubai-based architecture firm ZNera Space has proposed a new type of contemporary symbol for the city: a green and natural landmark that serves as a "continuous metropolis" around Burj Khalifa. Dubbed "Downtown Circle", the project features installing a giant ring-like structure of 550 meters in length around the world’s tallest free-standing structure. The structure will "investigate how at this critical time in the country’s development, architects, and urban planners can move away from previous urban models of isolated skyscrapers, towards a more humane typology that seeks to emulate nature and create diverse public spaces".

The project comes as a response to the continuous rise of the global population, and how the fabric of urban centers is changing, especially in Dubai, where rapid urbanization drive has prompted rapid urban growth characterized by skyscrapers and sprawl. The 550 meter tall mega structure offers an alternative to the singular and unconnected high-rises found in most metropolitan areas.

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The structure's circumference is 3 km. As it encircles the Burj Khalifa, it draws panoramic views and clean air from the skypark which forms the central spine of the development. The large scale of the structure is broken down into smaller units to create a variety of spaces to serve public, commercial, and cultural programs. The project offers a variety of office and housing typologies, from large offices and living/working units, to lofts, townhouses, and terraced houses.

The downtown circle project aims to establish a sustainable and a self sufficient vertical urbanism, creating a hyper-efficient urban center that gives back to the environment. The footprint of the building is composed of two main rings, which are held together by a a continuous green belt – the “skypark” – which is illuminated with natural light and has offices and research centers embedded in it. The “skypark” connects the floors with each other vertically, creating a connected three-dimensional urban green eco system.

The concept is a potential answer to the global search for new, mixed urban typologies, which combine high densities and lavish greenery, dynamic urban functions and a high-quality user experience, following the demand for both climate protection and environmental excellence. Different climates are recreated inside the continuous skypark, where visitors can experience canyons, sandy dunes, and plants from various floras. Swamps, waterfalls, tropical vegetation, digital caves, cascades, fruit-trees, and flowers of various hues and species enrich the green eco system.

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In order to give back to the natural environment, the plan includes proposed areas for rainwater harvesting and solar power. The design also stores carbon and filters pollutants from the air, in addition to providing sanctuaries for wild plants and food production. The Skypark within the structure will provide residents with a connection to nature and enable opportunities for outdoor recreation and a healthier lifestyle. Taking into account the coastal development and how vulnerable they are to rising sea levels, the proposed typology explores remedies and proposes a unique urban model in response to this threat.

As for transportation, a fleet of suspended peripheral pods transport passengers from one node to another within the Downtown circle. These suspended vessels travel through a network of rail at the bottom tier towards their destination. 20-passenger pods are loaded at the outer perimeter ring and are connected through a pressurized vessels attached to the main lift cores. These hyper pods can travel at speeds of 100 kilometers per hour, and capture a 360 view of the entire city at the height of 500 meters.

Dubai rental market sees landlords and tenants seek more flexibility on contracts

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ubai: Are landlords in Dubai telling you to go for a two-year rent lock-in contract on that new home? Even if the rent on offer seems absolutely reasonable, tenants are better off negotiating on a year-by-year basis.

Because right now, residential rents are headed in only one direction – and that’s down. Based on market feedback, new contracts since June have on average 8-15 per cent declines, depending on locations and tenants’ willingness to look at a wider range of communities or high-rises. And there’s no guarantee rents are going into stability mode any time soon.

That being the case, “Why would any tenant want to commit to rent lock-ins of two years if they expect rates to continue to fall,” said John Stevens, Managing Director at Asteco. In fact, what is happening right now is a willingness by landlords to allow short-term lease extensions “while tenants look at their options,” said Stevens.

Flexibility is the theme

In fact, in Dubai’s residential rental space, there is more of a give-and-take attitude on the part of landlords and tenants. This is most evident in the case of early termination of lease contracts as well. “We have seen a many landlords provide rent-free or rent deferrals,” said Prathyusha Gurrapu, Head of Research and Advisory at CORE, the real estate consultancy.

“Landlords are even willing to allow concessions on early termination of leases – but provided tenants can show the necessary documents to show loss of employment or salary reductions.” (In normal course, such early cancellations on a rental comes with a two-month penalty.)

Being tested

Landlords confirm there is no let up in the number of requests they receive from tenants requesting penalty waiver on early lease terminations (or even rent payment delays). Most of them are willing to consider such requests given the unprecedented nature of the situation they - and their tenants – are facing.

“Only two things matter for a landlord these days – that their property remains occupied and they can clear the cheques received from tenants,” said a senior official at a property leasing firm. “If a property remains unoccupied for even two to three months, it could alter the rental demand and values.

“No one can ignore the number of new properties being completed and pushed into the rental market.”

Some relief

Landlords may, however, get some relief in the weeks ahead. Going by the first six months’ data, the pace of handovers of new properties is slowing down, according to Asteco. Between April to end June, there were 4,200 new homes added against 5,750 units in the first three months.

Even if the pace picks up between now and end of the year, it’s unlikely to record major improvements. As it is, “Research reveal that approximately 20 per cent of previously tendered or under construction projects have been put on hold - temporarily or indefinitely,” according to a recent Asteco update. (In the 12 months to end June, Asteco estimates that apartment rents in Dubai are down by 13 per cent, and comparable to the average decline seen on villas.)

It “anticipates this pattern is likely to prevail, or even intensify due to the expected volume of additional supply combined with a potentially sharp drop in demand in the short- to medium-term due to the impact of COVID on employment.”

Split them up

Landlords would do well to keep close watch on the job market – any further volatility there will have repercussions on their future income. To offset tenants’ burden, landlords are committing to multiple cheques, with six- and even 12-month payment options being offered. As long as the cheques keep coming in… and getting cleared, they are fine.

Even landlords are learning to work on a month-by-month basis.