Budget hotel slashes room rates by 30%

PRICE CUTS: Budget hotels are cutting room rates to retain a competitive price difference with more upmarket hotels. (Getty Images)

Budget hotel chain Premier Inn has slashed room rates in Dubai by 30 percent in response to more upscale rivals dropping their rates, as tourism begins to slow in the emirate.

Premier Inn Middle East, which is a joint venture between Emirates and UK-based holding company Whitbread, has reduced the daily room rates to AED350 ($95.3) from AED495 ($134.8) until the end of September, in response to a slowing tourism market in the emirate.

“Recently it would appear that many 4-5 star luxury hotels have reduced their rates quite substantially. Premier Inn’s priority has always been to provide the very best value for money to our customers and this reduction ensures we remain true to our brand values,” said Darroch Crawford, managing director of Premier Inn Middle East.

The company has sites under construction at Dubai International Airport and Dubai Silicon Oasis, where the second Dubai property will open in early May this year and where the rate will also be AED350.

Construction will start on two sites in Abu Dhabi shortly, the company said.

“Whilst we have been performing very well, we are determined to offer the best value for money and friendliest service in every market in which we operate. It’s a pre-emptive measure to ensure our occupancy levels remain healthy,” Crawford said.

Premier Inn is the UK’s biggest hotel brand with over 580 hotels and almost 40,000 rooms across the UK and in Ireland.

It is owned by hotel and restaurant company Whitbread, which also owns Starbucks rival Costa Coffee.

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READERS' COMMENTS

Great Value
Posted by Terry, London, UK on Tuesday 17 February 2009 at 16:56 UAE time


This is such great news. As a business owner I regularly need to make trips over to Dubai and the extortionate prices of some hotels has been crippling to my budget. Since Premier Inn has opened it's had a great impact on the old balance sheet! Many thanks Premier Inn - best value hotel in Dubai!!

134$?
Posted by Saeid on Monday 16 February 2009 at 20:21 UAE time


Only in Dubai a hotel charging 134$ a night would be called 'Budget'.

I prefer to spend my holidays in Thailand where a 4 star hotel with an amazing breakfast buffet is only 60$ a night.

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