According to real estate services firm JLL, Dubai hospitality industry is sitting on an inventory of 123,200 hotel rooms and the market could breach 142,000-room mark, during Dubai Expo.

Lemon Tree Hotels' deputy managing director Rattan Keswani said: "We are in the larger part of our portfolio which is Lemon Tree Hotels a mid-scale brand in that brand space. So this takes the mid-scale branding out of India."

"There aren't too many branded mi-scale players in GCC. Either they are clearly in the economy budget space or they are in the upper-upscale space. So we thought it would be a wonderful way to lay our footprint there, which is what led to us to go to Dubai. It is a wonderfully located 115 key smart hotel in the Jumeirah district."

He added that in terms of price point, it is a function of market in demand and supply.

What is great about Dubai is that while it keeps adding to supply, demand normally tends to catch-up within the first 12-14 months and which has been a pattern for the last 4-5 years, Keswani told CNBC-TV18.

"So, the price point at the present moment in this space will be between USD 85 and USD 105 and we hope that that will increase quite substantially as we come closer to the expo in 2020."

First Published:Feb 17, 2020 10:23 PM IST