Tough times for Dubai’s hotel sector to remain until 2012

Dubai-HotelsDooms days for the hotel industry of Dubai have not been over yet and the sector is likely to remain under pressure until the end of 2011 and 2012. Hotel room rates, adversely hit due to slump in the hospitality segment, are expected to start improving in late 2011, according to a research conducted by CB Richard Ellis (CBRE).

Julian Kemp, Associate Director of CBRE Hotels EMEA said, "Leisure travel may take longer to improve and therefore leisure sector rates may remain depressed. Hotel Rate improvement in Dubai may take longer toward the end of 2011 and beginning of 2012."

Julian Kemp said that there is no dearth of luxury accommodations in Dubai at this point of time and this over supply is responsible for the room rates to remain incredibly low. Hotel occupancy level recorded a decline of 10.2 per cent last year because of decline in business activities due to global financial crisis.