UAE hotels enjoy record guest numbers as owners refurbish to reap rewards

UAE hotels enjoy record guest numbers as owners refurbish to reap rewards

Hotel occupancy rates are bouncing back in UAE, but rooms need to be refurbished and future-proofed to ensure profits going forward, industry experts say.

In February, hotels in Dubai enjoyed 91.6 per cent occupancy, when the rate usually sits between 75-85 per cent.

The first quarter of 2022 showed signs of a strong recovery post-pandemic, with occupancy and revenue-per-room rising, allowing many in the sector to target refurbishment.

Almost half of all available hotel rooms in Dubai are more than a decade old, according to a recent HDR report into Accommodation Supply & Demand, citing data compiled between Jan – Feb 2022. Of the recorded 139,000-plus rooms, some 65,000 are more than 10 years old, the report stated.

“A hotel should generally start looking at refurbishing beds/mattresses around year five, curtains and carpets around year seven, and joinery/fittings/furniture/equipment (FFE) around year 10. The life cycle of a hotel, if not renewed, starts to decline from year ten onwards,” said Nathan Hones, COO / Partner at Carter Hones Associates.

“As visitors are returning to the UAE, hotels are open with high occupancy rates, putting more liquidity into the coffers of hotel owners. This allows them to re-open previously closed restaurants and re-start their previously planned refurbishment