Hotels expect room demand to spill into next year

The festive season has brought Christmas cheer to hoteliers across the Emirates, with many reporting occupancy rates of more than 90 per cent.

Some, such as the Tilal Liwa Hotel at the edge of the empty quarter in Abu Dhabi, are expecting to be close to full, while the Ramada Hotel & Suites in Ajman and Arabian Courtyard Hotel & Spa in Dubai are already fully booked.

Other properties, including those operated by the Bin Majid Group and the Emirates Grand Hotel reported similarly optimistic figures.

The news rounds off a good year for many UAE hotels, which have seen substantial increases in revenues.

Ramada Downtown Dubai saw an 11 per cent growth in occupancy, a 31 per cent rise in revenues and a 38 per cent increase in profits this year.

"We have witnessed a healthy occupancy in the fourth quarter of 2012 and the same trend will continue in 2013. The only thing which might be affected is the average room rate with more room inventory coming to town, which will increase the competition," said Wael El Behi, the hotel's general manager.

"We will be closing 2012 with an occupancy level above 86 per cent [and] the forecast for 2013 will be 88 per cent. We are all set for another successful year," he added.

Business at Al Bustan Centre & Residence in Dubai was almost 40 per cent up, and the hotel aims to grow by almost a third in 2013.

But some acknowledged that there may be tough times ahead as they try to maintain their profitability amid growing competition.

"Guests in general are now expecting the best for less while hotel running costs are increasing," said Ayman Ashor, the general manager of Tilal Liwa Hotel, which recorded a 108 per cent increase in room revenue this year.

Additional hotels coming online next year will be a threat to many businesses, he said.

"However, I believe it is not as big an issue as everybody thinks. It boils down to advance and smart planning, knowing your market and effective strategies."

One chain opening new properties next year is the Bin Majid Group, which owns hotels including the Mangrove Hotel in Ras Al Khaimah and expects growth of between 7 per cent and 10 per cent across its properties next year.

"As part of our expansion plans, we are proud to announce the opening of our new properties, two in Abu Dhabi and one in Dubai in 2013," said Ali Kasapbashi, the group general manager.

"The properties are conveniently located and will provide easy access to all major attractions within the emirates. It will offer top-class service and facilities to cater to the demands of both leisure and business travellers."

gduncan@thenational.ae