The Hyatt Hotel chain is one of the most lucrative and influential in the world. The company is known for its elegant and iconic hotels that are second to none. Hotels situated within the United Arab Emirates (UAE) are thought to be some of the most luxurious in the world. “Grand Hyatt hotels are known for their luxurious accommodations, extraordinary restaurants, dramatic architecture and state-of-the-art meeting services” (investors.hyatt.com). That being the case the Hyatt Hotel industry of the UAE offers many financial factors such as interest rates, credit systems, and capital markets that affect doing business with the hotel magnate.
According to research conducted (Al-Tamimi, Alwan, & Rahman, 2011), stock markets within the UAE are some of the most progressive and emergent of any nation. This has made the UAE a major player in the business and industry sectors which has become a driving force for having a major impact on external economic factors that include “gross domestic product, consumer prices, money supply, interest rate, and oil prices” (Al-Tamimi, Alwan, & Rahman, 2011, p. 7). Inflation plays a key role in the manipulation of stock prices. From a global perspective, there is fluctuation among different worldwide markets which has an impact on the ability to conduct business at will in the UAE.
Investments among local investors into the UAE hotel industry has gotten stronger as UAE markets continue to emerge which has resulted in economic growth (Dudley, 2014). However, one of the biggest financial factors that have an impact on being able to do business in the UAE hotel industry is because of the UAE’s limited emergence within major global financial sectors. There is current talk of merging several smaller markets into a bigger market that would be more conducive for global trading and economic growth on a bigger scale. To that end, in an effort to generate new business in the hotel industry, Dubai is offering tax reprieves that would result in new hotels being constructed being exempt from the standard 10% municipality fee. Any new construction of mid-level hotels by investors would see a tax waiver. Market shares in Dubai alone in excess of 60%.
- Al-Tamimi, H. H., Alwan, A. A., & Rahman, A. A. (2011). Factors Affecting Stock Prices in the UAE Financial Markets. Journal of Transnational Management, 16(1), 3-19.
- Dudley, D. (2014). EM upgrade cements gains for UAE exchanges. Euromoney, 45(532), 58.
- Grand Hyatt Abu Dhabi Hotel and Residences Emirates Pearl Anticipated to Open in 2015. (n.d.). Retrieved October 29, 2016, from http://investors.hyatt.com/investor-relations/news-and-events/financial-news/financial-news-details/2014/Grand-Hyatt-Abu-Dhabi-Hotel-and-Residences-Emirates-Pearl-Anticipated-to-Open-in-2015/default.aspx