Skip to content

Cheval focuses on long-stay guests amid Dubai demand drop

With ambitions to double its global property portfolio, Cheval Collection, a luxury hospitality brand from the UK, is pushing forward with its international expansion strategy. According to Daniel Johansson, director of development and acquisitions, the company has identified the Middle East as a primary focus area for this next growth phase.

Strategic Emphasis on the Middle East

At present, Cheval Collection operates 16 properties located in both the United Kingdom and the Middle East. Dubai has been at the center of its recent expansion, starting with the debut of Cheval Maison – The Palm Dubai and followed by Cheval Maison – Expo City Dubai. These developments offer serviced apartments that feature fully equipped living spaces along with hotel-style amenities such as housekeeping services and a front desk, targeting guests needing medium- and long-term stays and seeking a blend of independence with professional hospitality support.

In April, the company embarked on a new chapter in Dubai by announcing Cheval Residences Dubai Islands, marking Cheval’s entrance into the branded residences sector. These units will be available for private purchase, with buyers given the option to join a Cheval-managed rental scheme. The completion of this branded residences project is set for 2029.

Targeting Local Demand in Dubai

Cheval is taking deliberate steps to align with Dubai’s domestic market, confident in the city’s capacity to sustain growth in luxury hospitality. While many global hospitality brands have entered Dubai, attracted by its developed tourism scene and steady flow of international travelers, Cheval is zeroing in on creating high-end, flexible accommodations that appeal to local clientele who desire home-like comforts with high-standard hotel services.

Meanwhile, credit ratings agency S&P Global has offered a conservative outlook, projecting that Dubai’s hospitality sector might not fully rebound until 2027. Despite this, Cheval continues to implement its expansion objectives, projecting that rising demand for serviced apartments and branded residences will support future sales and occupancy rates.

Growing the Portfolio

Success in the Middle East, particularly Dubai, is central to Cheval’s goal of doubling its worldwide presence. Johansson emphasized the key role this region plays in Cheval’s long-term plans. By expanding into the branded residences segment, the company diversifies its business model, generating income from unit sales while giving property owners the flexibility to have Cheval manage leasing operations.

As Cheval advances its growth efforts during a time of broader economic challenges, the brand remains confident that its upmarket, adaptable accommodation offering will appeal to both Middle Eastern guests and international investors. The addition of new properties and the future Dubai Islands project are intended to strengthen Cheval’s market position in what is considered one of the world’s most competitive hospitality sectors.