Cheval Collection Aims to Double Global Portfolio Size
UK-based luxury hospitality firm Cheval Collection plans to double its global portfolio, focusing on the Middle East with serviced apartments and branded residences amid market headwinds in Dubai.
Stock photo for illustration only, not from the actual event
- Cheval Collection plans to double its current portfolio of 16 global projects within the next few years.
- The Middle East serves as a primary growth driver, spanning both serviced apartments and branded residences.
- Dubai projects involve property conversions, while Saudi Arabia expansions rely on new builds alongside regional talks.
- S&P forecasts that Dubai occupancy rates will not fully recover to pre-war levels until after 2027.
UK-based luxury hospitality company Cheval Collection is pursuing an ambitious growth strategy to double its global portfolio within the next few years, identifying the Middle East as its primary engine for expansion, according to Daniel Johansson, the company’s director of development and acquisitions. The firm currently operates 16 projects spanning across the United Kingdom and the Middle East.
The company’s footprint in the Middle East initially took root through serviced apartment developments, specifically Cheval Maison – The Palm Dubai and Cheval Maison – Expo City Dubai. These furnished properties offer hotel-style amenities such as housekeeping and front-desk support, alongside self-contained kitchens and living areas tailored for medium- to long-stay guests.
Stock photo for illustration only, not from the actual event
Building on this foundation, Cheval branched into the branded residences sector in April with the introduction of Cheval Residences Dubai Islands, which is slated for completion in 2029. This business model diverges from its serviced apartments by selling individual units to private owners who can choose to participate in a Cheval-managed rental program.
Expansion into Saudi Arabia will be driven by ground-up developments, including Cheval Ladun Living and Cheval Maison – Sulaymaniyah in Riyadh, with additional sites under evaluation in Jeddah, Madinah, and Makkah. Furthermore, exploratory dialogues are actively underway across Qatar, Oman, Bahrain, Kuwait, and Egypt.
"Cheval is betting Dubai’s domestic demand can carry it to recovery. S&P doesn’t see that recovery until 2027."
Skift
Cheval's dual-model approach of blending medium-to-long-stay serviced apartments with individually owned branded residences highlights a strategic pivot toward revenue resilience. By targeting longer-stay guests, the company aims to insulate its operations from sudden drops in international tourism. However, industry analysts note that while occupancy rates may hold up better, operators often have to sacrifice average daily rates (ADRs) to absorb broader demand shocks during regional downturns.
Cheval emphasizes that its mix of short- and long-stay accommodation insulates the brand from over-reliance on international arrivals. Nevertheless, financial analysts caution that serviced apartments are not entirely immune to broader market shocks and typically trade high occupancy resilience for lower average daily rates. Notably, Cheval maintained sales momentum for its Dubai Islands venture throughout the U.S.-Iran conflict, even as S&P projects that overall Dubai hotel occupancy will remain below pre-war thresholds until late 2027.
Source: Skift
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