Dubai-based Samana Group has launched "Samana Holidays," a new entity that will allow homeowners and end users of its real estate entity, Samana Developers, to rent apartments on a short-term basis.

Imran Farooq, chief executive officer of Samana Holidays, said in a statement that the short-term rental option will increase rental income for homeowners from 8 percent to 15 percent once the apartments are booked on Airbnb.

The new entity will initially target 500 units, converting them into vacation homes (serviced apartments) for short-term rentals to allow stopovers for tourists, visitors, vacationers and FIFA World Cup fans.

The units will likely generate AED 38 million ($10.35 million) in revenue by the second quarter of 2023, the statement said, adding that Dubai vacation homes are expected to surge 30 percent after the UAE lifts Covid-19 restrictions, leading to an influx of visitors.

Imran Farooq, CEO of Samana Holidays, said converting the units from long-term to short-term was a perfect proposition for buyers and tourists.

Samana Holidays' serviced apartments will significantly reduce the rate per night compared to hotel rates in Dubai," he said.

Samana Holidays is the group's first step in launching its hotel business, the statement said, adding that a series of five-star hotel projects will be launched in Dubai by the third quarter of 2023.