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  • 01-02-18

    Dubai hotels urged to operate at 65-70 percent occupancy rate

    (MENAFN) Emaar Hospitality CEO Olivier Harnisch has advised Dubai hotel operators to work at an occupancy rate of 65-70% and preserve profit at the same time, instead of operating at an 80% rate.

    The CEO expects Expo 2020 to bring further instability to the market, even though Dubai has maintained progressive hotel rates for the last twenty years.

    At the Gulf and Indian Ocean Hotel Investors' Summit (GIOHIS) in Abu Dhabi, he said "demand and supply will grow strongly, but they will not be perfectly correlated. We've seen it last year in Dubai, where micro markets developed differently. The beach hotels were doing really well, and there was revenue increase year-on-year, whereas Downtown was a bit more subdued."

    Harnisch continued "it's growing fast. We're talking about 50,000 new rooms coming onto the market in the next few years. This is a lot. So there will be moments as a single hotel, you will have two or three hotels open in your immediate vicinity, and the demand growth will not be able to immediately accommodate that."

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