No good news for the hotels of Dubai this summer

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The hotel charges of Dubai still continue to drop. During the summer, the performance of hotels in Dubai is always low, and it was a tradition till 2014. But the performance has dropped to anxious levels as the price of the dollar has become stronger and the euro has become weaker. Also, Egypt was rediscovered as a regional destination very recently. This was the view point of the senior consultant at TRI Consulting, Hewett.

The rate of European currency is falling against other currencies and the dollar over the previous years. It has dropped from 1.38 to 1.11.

The rate of inhabitance will be lower by 3-2% compared to the previous summer. The ARR (average room rate) will drop 7-5% and the availability of revenue room will be 7-10%, as was stated by Hewett.

The average room rate dropped 12.8% in April to $373.78. The occupancy declined to 84.9% and the RevPAR was pushed down to $317, according to HotStats. The GOPPAR (gross operating profit per available room) fell 19.5%, that is, it came down to $273.

The area director at the research firm, STR Global, Wooller, wants the performance of the hotels of Dubai this summer to be the same as the previous year, because he knew that the rates will drop anyway; he wanted them to stay static.

Hick, the vice president of operations at the French hotel chain, says to hotels like Accor (four and five star hotels) to expect a drop in both ARR and RevPAR by 3-5% and 2-3%.

Hick said that Accor has been promoting heavily in order to get more visitors this summer. They had everything planned and had arranged summer campaigns as well.

Accor is getting more profit than others because it has been taking measures, such as not hiring temporary staff and so on.

Hick also says that with the planet 21 project, they have been reviewing some organizations and saving the maximum amount of energy. Moreover, they have stopped recruiting for some of the posts, increased the vacation planning, and have maximized the inner productivity of the hotel.

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