The new Emerald Palace Kempinski Dubai, which is set to open this week, is expected to achieve 50-60 percent occupancy during its first year of operation, according to Sebastien Mariette, managing director of the hotel and its sister property Kempinski Hotel and Residences Palm Jumeirah.
Speaking to Arabian Business, Mariette said occupancy at the $700m million luxury resort will sit below the average 80 percent occupancy in Dubai due to its high pricing strategy.
The 100,000 sq m property pays homage to the palaces of 18th century Europe, and its room rates open at $760 (AED2,800) for the entry room category.
“We expect occupancy in the first year to be between 50-60 percent, which is below the market level. Dubai is running on more than 80% and above on average, but if we want to be consistent with our pricing strategy, we have to give up a little on occupancy,” Mariette said.
He added that the property, which boasts 391 rooms, suites and villas would ‘suffer big time’ if it ran on higher occupancy due to its level of luxury. The hotel’s main chandelier in the lobby features 40,000 Swarovski crystals alone, while the property itself houses over 6,400 chandeliers.
“The objective is not to run at 99 percent occupancy all year long, otherwise I’ll put myself at $270 (AED1,000) a night per room, and I will fill up this place every single day. But the goal is to maintain this property to an optimum level of luxury. If we run at 99 percent occupancy, meaning check in and check out constantly, the property will suffer big time,” he added.
The Emerald Palace Kempinski Dubai includes eight restaurants and bars, a spa, fitness centre and yoga studio, 500m private beach and 80-seat private cinema. One of its F&B venues is Mix by famed chef Alain Ducasse. Spread over three floors, including a rooftop boasting city and sea views, the restaurant will open in the first week of December.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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