Hoteliers in the UAE expect a strong performance in the fourth quarter, with the Cop28 climate summit and New Year's Eve festivities driving even more bookings during the country's traditionally busy winter period.
UAE hotels are expecting occupancy rates to range between 80 per cent to 90 per cent during the three-month period as business conferences, leisure events and cooler weather lure international travellers, executives said on the sidelines of the Future Hospitality Summit in Abu Dhabi.
InterContinental Hotels Group, which operates the Crowne Plaza and Holiday Inn brands among others, is forecasting a 20 per cent increase in revenue per available room – or RevPar – for its UAE hotels during the fourth quarter compared to the same period in 2019, Haitham Mattar, IHG's managing director for Middle East, Africa and South-West Asia, told The National.
The UK-based global hospitality company is also forecasting RevPar growth of 10 per cent compared to the same quarter of 2022, mainly driven by Cop28.
“The last quarter of the year is normally the highest in demand with business meetings, holidays and tourism … this is when we have the highest demand from the European and Indian markets into the UAE,” Mr Mattar said.
“We're seeing huge demand with businesses on our books and the pace of bookings is becoming extremely healthy. We're well ahead of 2019 levels in terms of trading and well ahead of 2022 year to date.”
Sandeep Walia, chief operating officer for Marriott International in the Middle East, said the fourth quarter is “looking very good” on the back of consecutive global business events such as the Dubai Airshow and Cop28 in November.
“We've started with a lot of inquiries and we're holding bookings but between now and the journey to confirmations – there are a lot of steps,” he said.
“Overall, [the fourth quarter] is normally one of the busiest quarters for us in the UAE and in Dubai. There's a lot of growth in the Abu Dhabi market as well with a number of events and activities.”
The current trend of average daily rate growth outpacing the rise in occupancy levels is expected to continue in the fourth quarter, he said.
Siegfried Nierhaus, vice president for the Middle East at Deutsche Hospitality, said the company's UAE hotels are expecting occupancy rates of about 85 per cent to 90 per cent during the fourth quarter.
“From an overall UAE perspective, we see a very healthy quarter for 2023,” he said.
“This global event [Cop28] will bring even more limelight to the UAE and Dubai as destinations.”
Hospitality projects in the pipeline
The UAE's hospitality investment outlook shows $301.7 billion worth of hotel and residential projects under development, according to research by global consultancy Knight Frank.
Hospitality and residential projects worth $1.9 trillion are under development in the wider Middle East, with Saudi Arabia, UAE and Egypt accounting for 90 per cent of the total investment.
A significant volume of hospitality-related transactions is currently at an advanced stage of negotiation, with high-profile properties expected to change hands in the coming months, according to global real estate consultancy Colliers.
“There’s a strong appetite for the hospitality asset class – particularly in Dubai and Ras Al Khaimah – from regional and international investors, buoyed by strong operating performance last year and the continued enhancement of the UAE as a top-tier international tourism destination,” said James Wrenn, executive director and head of capital markets for Middle East and North Africa at Colliers.
UAE mid-market brand Rove Hotels is expanding its footprint across the Middle East with plans to grow to 10,000 rooms in operation or under development over the next five years, up from 3,400 operational hotel rooms currently, it said in a statement during the summit.
The company, a joint venture between Meraas and Emaar Properties, is also looking for more opportunities in the residential property market, after its first branded residence projects – Rove Home Aljada and Rove Home in Downtown Dubai – sold out.
Hilton also said it plans to increase its presence in the Middle East by more than 125 per cent in the coming years.
Its hotel openings expected in the next few months include Waldorf Astoria Doha West Bay, Conrad Bahrain Financial Harbour, Hilton Riyadh Olaya, Hilton Cairo Nile Maadi, Embassy Suites by Hilton Dubai Business Bay and Hampton by Hilton Kuwait Salmiya.
As part of its growth strategy, close to 100 hotels – totalling almost 25,000 rooms – are set to open in the Middle East in the near future, it said. Hilton is also managing an active pipeline, with about 70 per cent of its Middle East projects currently under construction.
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A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Zayed Sustainability Prize
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Gender pay parity on track in the UAE
The UAE has a good record on gender pay parity, according to Mercer's Total Remuneration Study.
"In some of the lower levels of jobs women tend to be paid more than men, primarily because men are employed in blue collar jobs and women tend to be employed in white collar jobs which pay better," said Ted Raffoul, career products leader, Mena at Mercer. "I am yet to see a company in the UAE – particularly when you are looking at a blue chip multinationals or some of the bigger local companies – that actively discriminates when it comes to gender on pay."
Mr Raffoul said most gender issues are actually due to the cultural class, as the population is dominated by Asian and Arab cultures where men are generally expected to work and earn whereas women are meant to start a family.
"For that reason, we see a different gender gap. There are less women in senior roles because women tend to focus less on this but that’s not due to any companies having a policy penalising women for any reasons – it’s a cultural thing," he said.
As a result, Mr Raffoul said many companies in the UAE are coming up with benefit package programmes to help working mothers and the career development of women in general.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
The five pillars of Islam
