RAK FAH
FURNISHED APARTMENT HOTEL
رفاهية العيش
Feasibility Study: Furnished Apartment Hotel in
Ras Al Khaimah, UAE
1. Executive Summary
Project: Development and operation of a mid-to-high-end furnished apartment hotel in
Ras Al Khaimah.
Objective: Offer short- to long-term accommodation for tourists, business travelers, and
remote workers.
Target Market: UAE tourists, GCC travelers, international digital nomads, and domestic
staycationers.
Location: Al Marjan Island, or RAK City center for high visibility and access.
2. Market Analysis
a. Tourism in Ras Al Khaimah
RAK aims to attract 3 million tourists annually by 2030.
New attractions: Wynn Resort (integrated resort with casino), Jebel Jais adventure
tourism.
High hotel occupancy rates in peak seasons.
b. Demand Drivers
Growing MICE (Meetings, Incentives, Conferences, and Exhibitions) sector.
Affordable alternative to Dubai for family and long-term travelers.
Increase in "bleisure" travel (business + leisure).
Demand for extended-stay lodging.
c. Target Customer Segments
UAE expats on weekend trips.
Digital nomads and remote workers.
GCC family tourists.
Business travelers from nearby free zones and industrial areas.
Visiting friends and relatives (VFR) market.
d. Competitor Analysis
Existing players: Hilton, Rotana, Rixos, and Airbnb properties.
Gaps: Lack of mid-range, branded furnished apartment hotels with hotel-like amenities
and flexible stay options.
Airbnb has informal furnished units but lacks the consistency and services of a hotel.
3. Location & Site Analysis
a. Recommended Areas:
Al Marjan Island: High-end tourism hub.
RAK City Center: Close to transport, shopping, and hospitals.
b. Site Requirements:
~2,000–4,000 sqm land (depending on scale).
Easy access to main roads, beach, and city attractions.
Parking space and zoning compliance.
4. Project Description
Feature Details
Rooms 50–100 furnished apartments (studio, 1BR, 2BR)
Amenities Gym, pool, coworking lounge, concierge, housekeeping
Stay Duration Nightly, weekly, monthly
Services Wi-Fi, utilities included, 24/7 reception, valet
Restaurant/Cafe Optional rooftop café or ground floor bistro
Technology Smart locks, online booking system, mobile app
5. Technical Feasibility
Design: Modular suites to allow rental flexibility.
Construction: Local contractors are experienced in hospitality builds.
Infrastructure: RAK supports utilities, fiber internet, and tourism infrastructure.
Permits: Licenses from RAK Tourism Development Authority (RAKTDA) and
Economic Department.
6. Financial Feasibility (Rough Estimates)
Item Estimated Cost (USD)
Land acquisition (optional) $1M – $3M
Construction (mid-range quality) $5M – $10M
Furnishing & Equipment $1M – $2M
Pre-opening (marketing, hiring) $250K – $500K
Working capital (1st year) $500K – $1M
Total Investment $8M – $16M
Revenue Projections
Occupancy Rate: 60%–75% (target)
Average Daily Rate (ADR): $100–$180
Annual Revenue Estimate: $2.5M – $5M
Break-even period: ~5–7 years (depending on scale and occupancy)
7. Risk Analysis
Risk Mitigation
Seasonality Long-stay offers, local promotions
Competition from Airbnb Branding, consistent service, loyalty programs
Regulatory changes Stay updated with RAKTDA regulations
Economic downturns Diversified guest segments, flexible pricing
8. Legal and Regulatory Feasibility
Must obtain:
o Hotel apartment classification from RAKTDA.
o Trade license from RAK Economic Zone or Free Zone.
o Health & safety and civil defense approvals.
o Municipality permits.
9. Conclusion
A furnished apartment hotel in Ras Al Khaimah is feasible and promising, given the emirate’s
tourism growth, upcoming mega-projects (e.g. Wynn Resort), and the increasing demand for
alternative lodging. A carefully positioned, well-managed property could generate healthy
returns and tap into a niche between hotels and short-term rentals.
