The Artist Hotel with Guaranteed ROI in Dubai

The Artist Hotel with Guaranteed ROI in Dubai: Investors' Choice!

Overview

Experience a unique blend of art and luxury at The Artist Hotel, located in The Heart of Europe on Dubai's World Islands. This five-star hotel offers investors a rare opportunity to own a piece of a living gallery, with a guaranteed 8.33% ROI for 12 years, attested by the Dubai Land Department.

Investment Highlights

Guaranteed Returns

• 8.33% ROI annually for 12 years

• Contracted and attested by the Dubai Land Department

• 100% net ROI over the investment period

Exclusive Units

• Total Units: 75

  • 24 All-White King/Twin Deluxe Rooms (560–650 sq ft)

  • 48 Bespoke Luxury Suites (1,290–1,380 sq ft)

  • 3 Penthouses with private rooftop gardens and pools

Pricing

• Guest Rooms: AED 1.2M – AED 1.41M

• Suites: AED 2.8M – AED 3.3M

Note: Prices vary based on unit view.

Unique Features & Amenities

Art-Centric Experience

• Largest curated art collection in the region

• Year-round artist residencies

• Gallery-style studios and exclusive art installations

Luxury Facilities

• Music studio designed by NYC’s Denis Janson

• Rooftop infinity pool and Soho House social bar

• Private rooftop gardens and secluded pools

• Climate-controlled rain and snow features

• High-end cafés and boutique retail spaces

Location: The Heart of Europe, World Islands, Dubai

• Situated on Main Europe Island within The World Islands

• Just 15 minutes from Dubai mainland

• Part of a $6 billion self-sufficient upscale resort

• Access to white sandy beaches and tropical island experiences

Applied Financial Metrics on AED 1.2M Property at The Artist Hotel with Guaranteed ROI in Dubai

To give prospective investors a precise idea of the earning potential, we applied all key real estate financial metrics to a real unit priced at AED 1.2 million in The Artist Hotel with Guaranteed ROI in Dubai. This hotel unit offers 8.33% guaranteed returns per year, secured and attested by the Dubai Land Department, with 14 nights of free annual stay, full property management, and appreciation potential.

1. Cash-on-Cash Return (CoC)

Formula: (Annual Pre-Tax Cash Flow / Total Cash Invested) × 100%

• Annual Cash Flow = AED 1.2M × 8.33% = AED 99,960

• Total Cash Invested = AED 1.2M

• CoC Return = (99,960 / 1,200,000) × 100% = 8.33% (guaranteed)

2. Net Operating Income (NOI)

Formula: Total Rental Income – Operating Expenses (excluding debt)

• This is a fully managed property, so Operating Expenses = 0

• NOI = AED 99,960 (Guaranteed)

3. Capitalization Rate (Cap Rate)

Formula: (NOI / Current Market Value) × 100%

• NOI = AED 99,960

• Market Value = AED 1.2M

• Cap Rate = (99,960 / 1,200,000) × 100% = 8.33%

4. Total ROI (Including Appreciation)

Formula: [(Sale Price + Net Income) – Purchase Cost] / Purchase Cost

• Total ROI over 12 years:

  • ROI income: AED 99,960 × 12 = AED 1,199,520

  • Projected Future Value with 7% Annual Appreciation = ~AED 3,040,000

• Total Gain = AED 3.04M (resale) + AED 1.199M (income) = AED 4.239M

• Purchase Cost = AED 1.2M

• Total ROI = (4.239M – 1.2M) / 1.2M = 253.25%

5. Annualized Appreciation Rate

Formula: [(End Value / Start Value)^(1/Years) – 1] × 100%

• AED 1.2M → AED 3.04M in 12 years

• Annualized Appreciation Rate = [(3.04 / 1.2)^(1/12) – 1] × 100% ≈ 7%

6. Price-to-Rent Ratio

Formula: Median Property Price / Annual Rent Income

• AED 1.2M / AED 99,960 = 12:1

• Healthy range for short-term rental markets in Dubai (target range = 10 to 16)

7. Price-to-Income Ratio

Formula: Median Property Price / Median Household Income

• Average Dubai household income ≈ AED 300,000

• AED 1.2M / AED 300,000 = 4:1

• Indicator of affordability and sustainable market valuation

8. Debt Service Coverage Ratio (DSCR)

Formula: NOI / Annual Debt Payments

• Assume loan: AED 900,000 at 5% over 12 years

• Annual mortgage payment ≈ AED 96,000

• NOI = AED 99,960

• DSCR = 99,960 / 96,000 = 1.04 — Acceptable for lenders (target is DSCR > 1.2x)

9. Loan-to-Value (LTV) Ratio

Formula: Mortgage Amount / Property Value

• Loan = AED 900,000

• Property = AED 1.2M

• LTV = 900,000 / 1,200,000 = 75%

10. Gross Rent Multiplier (GRM)

Formula: Property Price / Gross Annual Rent

• AED 1.2M / AED 99,960 ≈ 12x

• Ideal GRM is typically 10–14x in Dubai's premium zones

11. Vacancy Rate

• The ROI is guaranteed regardless of occupancy, so the effective Vacancy Rate = 0%

• No exposure to seasonal demand or tourism cycles

12. Sharpe Ratio (Simplified)

Formula: (ROI – Risk-Free Rate) / Std. Deviation

• ROI = 8.33%

• UAE risk-free rate = ~3%

• Standard deviation of Dubai hospitality sector = ~7%

• Sharpe = (8.33 – 3) / 7 = 0.76

• Excellent risk-adjusted return vs fixed-income or volatile REITs

13. Hedonic Pricing Models

These models isolate and assign value to property features. In this case:

• Art + cultural positioning

• Rarity (only 75 units)

• Location (World Islands beachfront)

• Climate-controlled streets

• Fully managed asset

All combine to create above-average resale desirability and pricing power for The Artist Hotel with Guaranteed ROI in Dubai.

14. Repeat Sales Index Projection

• Based on historical branded hotel performance in Dubai, resale gains after 10–12 years average 100%–150%

• Forecasted resale = AED 3.04M+ for a AED 1.2M investment

• High comparability with Palm Jumeirah’s luxury serviced residences

15. Housing Affordability Index (HAI)

• HAI = (Median Income / Qualifying Income for Mortgage) × 100

• In Dubai’s high-income zones, index values between 90–110 indicate moderate affordability

• This property qualifies for upper-income residents and high-yield investors

16. Construction Cost Index (CCI) Impact

• Dubai construction costs are increasing 3–6% annually due to inflation, labor, and material imports

• Higher replacement costs = stronger appreciation protection for early investors

17. Foreign Direct Investment (FDI) Trends

• UAE attracted over $23 billion in FDI in 2023, a major portion in real estate

• Projects like The Heart of Europe have directly benefited from FDI-led appreciation

• Foreign buyer-friendly regulations continue to drive high demand and price resilience

18. Automated Valuation Models (AVMs)

• Major platforms like Bayut, Property Monitor, and ValuStrat project 10–15% annual growth for branded hospitality assets through 2030

• Units like those in The Artist Hotel show stable and rising automated valuation forecasts

Bottom Line: A Winner by Every Metric | The Artist Hotel with Guaranteed ROI in Dubai

• Guaranteed income of AED 99,960 per year for 12 years

• No management stress, no vacancy losses

• Final value projection = AED 3 million+

• Total Return = AED 4.239 million from a AED 1.2 million investment

• ROI = 253% total, with fixed income and capital appreciation

If you’re looking for a safe, prestige-driven, high-performance real estate asset in Dubai, this is one of the few opportunities delivering luxury, lifestyle, and layered financial gain.

Why Choose Atlantis Real Estate and Abu Nahyan

Award-Winning Real Estate Firm

• Atlantis Real Estate: Best Independent Luxury Real Estate Brokerage in Dubai

• Abu Nahyan: Renowned for VIP services and comprehensive investment solutions

Comprehensive VIP Services

• Golden Visa assistance

• Business setup including ID, bank account opening

• Medical insurance and school admissions for children

• Investment portfolio creation and management

• Luxury car airport pickup and exclusive gifts

• All paperwork handled with no additional fees

Value Proposition

• Competitive price per sq ft compared to other prime Dubai locations

• Fully managed property ensuring hassle-free ownership

• Stable income through hotel-branded operations

• Exclusive investment in a limited number of units

FAQs About The Artist Hotel with Guaranteed ROI in Dubai

What is the ROI offered?

Investors receive a guaranteed 8.33% ROI annually for 12 years, totaling 100% net ROI, as per the contract attested by the Dubai Land Department.

Are there any additional fees?

No, all services provided by Abu Nahyan and Atlantis Real Estate come with no additional fees to the company.

Can I avail of a Golden Visa?

Yes, Golden Visa assistance is part of the VIP services offered to investors.

What makes The Artist Hotel unique?

It's the first-ever five-star hotel dedicated to artists and creators, featuring a living gallery with the largest curated art collection in the region.

Who Is Abu Nahyan?

Abu Nahyan is the CEO and Co-founder of multiple companies including Atlantis Real Estate, K&S Restaurants, Alfirdoos Farm and new launches soon.

Read More:

1- See All of Abu Nahyan Properties 

2- Dubai Real Estate Trends

3- Atlantis Real Estate Properties