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Hotels in Dubai Feature Improved Occupancy, but Kempinski Still Delays Its Project

News Kempinski Hotels has announced the delay in building of a hotel in Palm Jumeirah, Dubai, for at least two years. The hotel, which is now only at the stage of shell building, will be left unfinished in its current state. The regional director of the company, Ulrich Eckhardt, tells Bloomberg the 253-key hotel is delayed due to poor planning of the officials that approve the building of new hotels. Here he means Dubai officials and their examination of inventory growth in accordance with occupancy rates.

Currently Dubai has approximately 50,000 rooms operating in the emirate. The number of tourists coming to this destination raises and, according to the study provided by Deloitte, it will increase by almost 25% until 2016. Such influx will help to adsorb new 30,000 guestrooms that are about to appear on the market within next several years.

However, such growth of guestrooms in the emirate is not random. Occupancy rates of hotels in Dubai continue increasing. In January 2011 the rate added 7.9% and estimated 76.6% according to the results provided by STR Global. RevPAR (revenue per available apartment) increased by 2.6% and estimated US$178. This is the best RevPAR for hotels in the Middle East in general.

In plans of Kempinski Hotels is the opening of 9 accommodations within next 3 years. These will be hotels in Oman, Lebanon, Abu Dhabi, Bahrain, Syria, Egypt, and Saudi Arabia. In addition to them the hotelier plans to open 10 luxurious villas and 82 upscale serviced apartments on Palm Jumeirah this summer.

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