CEO Jose Silva said Jumeirah Group's hotels have an occupancy rate in the mid-70s - a decrease from a previous rate in the 80s.
Dubai-based Jumeirah Group plans to open an additional five hotels in Europe and Asia over the next 18 months, according to CEO Jose Silva.
Jumeirah’s new management agreements include hotels in Bali – in which Jumeirah is a 50 percent partner - and Guangzhou in China, both of which will open this year.
A third hotel, in the Chinese city of Hangzhou, is slated to open in the next 18 months.
In Dubai, Silva said that the firm’s hotels have an occupancy rate in the mid-70s, Silva said, a decrease from a previous rate in the 80s.
Quoted by Reuters, Silva said that the company is maintaining revenue via a “mild rate increase.”
“Dubai doesn’t have a recession market. It has a maturity market, where it’s still growing, a little short of four percent,” he said. “But the supply is growing at 5 percent, so the challenge is too much supply instead of no growth.”
Silva added that he doubts that “there will be many hotels put into the pipeline today.”
“That’s typical of a supply and demand nature,” he added.For all the latest business 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.