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Sun 15 Apr 2012 06:30 PM

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European hotel giant sees Dubai demand surge

Accor says revenue per available room at its 14 hotels increased by 25% in Q1

European hotel giant sees Dubai demand surge

Accor, Europe’s biggest hotel
company, said on Sunday demand at its 14 hotels in Dubai jumped in the first
quarter as tourism and business travel revived.

Revenue per
available room for Accor’s 4,000 rooms in Dubai surged 25 percent
compared with the year-earlier period, Christophe Landais, the company’s
Middle East managing director, said.

Occupancy averaged 85
percent in the quarter, he said.

“The
business is back in Dubai,” Landais said. “We are seeing more demand on
both leisure and business travel.” Occupancy rates averaged 78 percent
in 2011, he said.

Accor will
open two additional hotels in Dubai before the end of this year,
including one on the artificial island Palm Jumeirah.

The hotel openings
were delayed by about seven months after the global credit crisis
caused banks to tighten lending for real estate projects. Property
prices slid by more than 65 percent, Craig Plumb, head of research at
Jones Lang LaSalle, said in March.

Adding 18,000 rooms to the market in the past two years hasn’t had a significant impact on rates, Accor’s Landais said.

Dubai
received 9.3 million tourists last year, up 10 percent from 2010,
pushing up hotel revenue by 20 percent, the emirate’s tourism department
said March 7.

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