Dubai: Hotels in the UAE are rolling out their offers for Ramadan, expected to start on June 29, to lure visitors during the slow period.
Hoteliers have traditionally seen lower occupancy levels and room revenues during July compared to other months. Food and beverage is one way to boost revenues during Ramadan, when families and friends gather to shop and eat.
“We anticipate both Abu Dhabi and Dubai will experience occupancy levels fall throughout July as it corresponds with Ramadan, which historically sees demand levels fall, especially from GCC [Gulf Cooperation Council] and international leisure travellers,” said Christopher Hewett, senior consultant at TRI Hospitality Consulting.
Hotel occupancy during July is likely to stand at around 48 per cent in Dubai, according to Philip Wooller, Area Director for the Middle East and Africa at STR Global. He expects average room rates in the emirate during Ramadan to touch Dh650.
Hoteliers said that the majority of guests have booked a month ahead of their stay during Ramadan.
They expect occupancy levels to grow by 2-5 per cent in July compared to the same period in 2013.
“We are anticipating 2.3 per cent growth in the occupancy rate across our hotels in the UAE, with an average occupancy of 63 per cent,” said Guy Hutchinson, chief operating officer of Rotana Hotels.
Similarly, Arabian Courtyard Hotel & Spa forecast occupancy to grow by 3-4 per cent, according to Habib Khan, the hotel’s general manager.
Meanwhile, hoteliers expect revenue to grow next month compared to the corresponding time a year ago.
“Total revenue growth is forecasted to be 30 per cent over the same month last year, while the growth in revenue per available room is expected to be 13 per cent,” said Andreas Mattmuller, COO for the Middle East and Asia of Mövenpick Hotels & Resorts.
He attributed the growth in revenue to the increase in the company’s room inventory with the opening of Mövenpick Hotel Jumeirah Lakes Towers and “the general business sentiment and economical improvements witnessed over the past year across the country.”
However, luxury hotel operator Jumeirah Group expects revenue in July to be in line with the corresponding time a year ago. “However, with Eid falling at the end of July, we are anticipating a lift in overall revenues at the end of the month,” said Piers Schreiber, the group’s vice president of corporate communications and public affairs.
Food and beverage is expected to account for 37 per cent of Mövenpick’s hotels total revenue for July, largely generated from Iftar buffets and private Iftar functions across its properties.
Al Bustan Centre and Residence expects food and beverage to account for 15-20 per cent of its total revenue for July, said Moussa Al Hayek, the company’s COO.
