Investments renegotiated by hotel owners in Dubai

March 15- Dubai hotel owners and operators are reconsidering the terms of investments proposed and the payback period allocated to them, it was learnt on Sunday. In fact, said analysts, some operators are even recalculating the revenues expected from the projects
A classic example of this is one hotel owner in Dubai who renegotiated the expected revenue from the project: "In this particular case, the owner was not lowering his expectations on revenue and asking the operator not to reduce the room rates, pointing out that the latter had promised a particular return and room rate, when they entered into a contract three years ago. But fetching that same high rate is absolutely impractical and impossible in today's situation," explained Ahmed Ramdan, Chief Executive Officer of Roya International, a Dubai-based hospitality consultancy firm. The owner finally agreed to slash rates after consulting with the firm.

Meanwhile, the average hotel room rates all over the world, including the Middle East, have gone down in the past two years. Hotel owners in Dubai slashed rates because of this but while occupancy went up in the last two months, the revenue per available room (RevPar) has gone down.

While experts say that the low-rate trend will continue throughout the year, occupancy levels will rise. "It was not possible to maintain high room rates for many hotels. The reduction in room rates has come at a time when the hospitality sector will also witness an over supply, but I think Middle East hospitality sector will tend to benefit in the long run," said Faras Eid, Partner consulting with Deloitte & Touche, Middle East.

More Hotels
Looking for an adventure - go to Iraq for Eid
* Hotel Metropole Geneva
Corinthia Hotel London launches new luxury suites
Latest Travel News
Looking for an adventure - go to Iraq fo...
Turkish Airlines partners with Warner Br...
Emirates announces one-off A380 service ...
Featured Sights To See
What to do with Children in Tow

What to do with Children in Tow

Isfahan, Iran

Isfahan is not a city geared specifically towards children. The air around the city is formal, sober, and one of intellect and reverence rather than frolic and merrymaking. The lack of amusement opportunities within the city is somewhat of a downside when you are bringing along a family with toddlers. The only best place you can take children is probably one of the numerous parks around the city. ...

Marino Casino

Marino Casino

Dublin, Ireland

Marino Casino is not a casino in the modern sense.  It is actually a small villa built in the mid-eighteenth century by Scottish architect Sir William Chambers.  The name is derived from Italian, and means 'little house'.  Completed in 1775, it is a striking example of Neoclassical architecture.  The casino was part of the estate of James Caulfeild, the 1st Earl of Charlemont.&...

Sports Museum of Los Angeles

Sports Museum of Los Angeles

Los Angeles, United States

The Sports Museum of Los Angeles contains over 10,000 sports memorabilia and collectible items from decades of sports history.  A haven for sports fans!     Address: 1900 S Main St, Los Angeles Tel: (213) 763-4860  ...

The Statue of Liberty

The Statue of Liberty

New York, United States

“Give me your tired, your poor, your huddled masses yearning to breathe free….”  Thus reads ‘The New Colossus’, a sonnet by American poet Emma Lazarus to commemorate the famous landmark.  Though not its initial intent, the Statue of Liberty quickly became a symbol of immigration and the American Dream as new Americans passed by on their way to Ellis Island. The Statue of Lib...