← All case studies

ILLUSTRATIVE ONE-BEDROOM CASE STUDY

Palm Jumeirah case study

A premium-rate scenario with fewer booked nights and a higher operating-cost base.

Why guests choose this area

Palm Jumeirah appeals to visitors looking for a resort-style Dubai holiday, with beaches, beach clubs and a wide choice of dining and leisure experiences. Attractions such as The View at The Palm and Aquaventure add to its holiday appeal. Short-term apartments can suit couples and families seeking privacy, extra space and access to this distinctive island setting.

A furnished one-bedroom apartment with resort-style amenities.

Palm Jumeirah case study

Bedrooms: 1 · Available nights: 365

Average nightly rate (AED)

800

Booked nights

226

Occupancy (%)

61.9

Estimated annual revenue · AED

180800

Modelled annual costs · AED

113387

Annual cost breakdown

Management fee · 20% of room revenue AED 36,160

VAT on management · 5% of fee AED 1,808

Platform fee allowance · 15.5% AED 28,024

VAT on platform fee · 5% allowance AED 1,401

Utilities & internet AED 14,400

Cleaning & linen · net allowance AED 4,800

Maintenance reserve · 3% of room revenue AED 5,424

Building service charges AED 18,000

Holiday-home permit allowance AED 370

Insurance allowance AED 1,200

Guest supplies & consumables AED 1,800

Total modelled costs: AED 113,387

ESTIMATED OWNER BOTTOM LINE · AED / YEAR

67413

AVERAGE PER MONTH · AED

5618

Room revenue less all displayed costs. Before mortgage or rent, setup, furnishing, major capital works and owner income taxes.

What sits behind these estimates?

Revenue: Average nightly rate × booked nights. Room revenue is stated before platform and management deductions, excluding guest-funded cleaning charges, guest accommodation VAT and Tourism Dirham. Booked nights vary between cases; actual revenue is seasonal.

Management: 20% of gross room revenue is used as an explicit modelling assumption, plus VAT at 5% of that fee. Your signed proposal determines the actual commission basis and inclusions. These examples use the Standard plan, not the Flexible plan.

Platform costs: An Airbnb single-fee example of 15.5% of room revenue is used, plus a separate 5% VAT allowance on that fee with no input-tax recovery assumed. Actual booking channels, fee structures, tax treatment and the inclusion of cleaning charges in fee calculations can change the total.

Cleaning and linen: Normal turnover cleaning is assumed to be covered by guest cleaning charges; both matching guest charges and turnover costs are excluded. The displayed net allowance covers linen replacement, deep cleans and unrecovered cleaning. Any shortfall in guest-funded cleaning reduces the owner’s bottom line.

Property costs: Utilities, insurance, consumables and service charges are example budgets, inclusive of any unrecovered taxes. The maintenance reserve is 3% of room revenue. The one-bedroom permit allowance is AED 370. Actual invoices and building charges must replace these assumptions for a property-specific estimate.

Bottom line: Gross room revenue minus all displayed annual costs. This is a recurring operating surplus, not investment yield or after-tax profit. Mortgage payments, rent where applicable, acquisition costs, furnishing, initial setup, major capital works and owner income taxes are excluded. The monthly value is annual surplus divided by 12, not a prediction for any specific month.

Reference sources:Airbnb service fees · DET holiday-home permit fees · UAE standard VAT rate. These sources support fee assumptions; they do not validate the illustrative revenue forecasts.

About this estimate

Prepared 6 October 2026. Modelled assumptions, not actual client results or guaranteed returns. Average nightly rate × booked nights gives room revenue. The monthly bottom line is annual operating surplus divided by 12; actual income is seasonal.

See the numbers for your own property.

Share your building, bedrooms, furnishing and owner-use plans for a property-specific review.

Get a free revenue estimate →Contact us →