The Abu Dhabi hotel industry is comfortable with the occupancy rate in the range of mid-70s from the currently mid-60s, Aldar Hotels and Hospitality Managing Director Paul Bell said.
Speaking at the ATM, he said occupancy and rate are certainly not the same as they were during the Formula 1.
"We were hoping that the occupancy during Formula 1 will remain static for the rest of the year, but it has not been the same. I think Abu Dhabi would like to have occupancy in mid-70s rather then the currently mid-60s in the second half of the year," he said.
STR Global said last month that hotels in capital suffered a drop in occupancy rates of 24 per cent to just 64 per cent.
Aldar Hotels, a subsidiary of Abu Dhabi-based real estate major Aldar Properties, has opened eight hotels and three are under construction with expected completion at end of next year. Bell expects the group will have more than 20 hotels over the next five years.
He said hotel rate in Abu Dhabi has dropped substantially year on year and expects it to recover in the later part of the year. He said Abu Dhabi as the world's most expensive market may be "positive for some people but that's not the title Abu Dhabi would want necessarily going forward."
The company's seven hotels are managed by global hotel management firms such as Rezidor, InterContinental Hotel Group and Rotana. The firm has also signed deals with Marriott, Oberoy, Taj Group,Movenpick and Accor hotels for its upcoming projects.
By Waheed Abbas
© Emirates Business 24/7 2010
