Soaring rents and costs are behind a trend for UAE luxury hospitality investors to look beyond their own shores.
Dubai has more than 13,000 restaurants, placing it behind only Paris for density. But the UAE’s luxury dining names are setting their sights further afield for greater returns — which can be up to 50 percent higher than in the emirates.
Investors are drawn to the restaurant industry but Dubai’s tendency for large restaurants with high rents, capital investment requirements and operating costs can make it harder to generate high returns.
Hospitality industry reports say that 60 percent of restaurants in the UAE shut down within their first year of business, and 80 percent within five years, with inexperienced restaurateurs typically experiencing the most challenges.
Fern Hospitality Ventures set up a $100 million fund last month that helps investors drive overseas expansion.
Watch the video to understand how their business model works and where investors are putting their money.
