Hotels in the UAE cut prices and attracted local guests — The National
International hotel chains in the UAE and the Middle East began cutting costs, lowering rates and offering packages for local tourists after the start of the war with Iran. Some hotels were temporarily closed for renovations, while operators say they tried to avoid staff layoffs, The National reports.
According to Haitham Mattar, head of IHG Hotels and Resorts in India, the Middle East and Africa, the company did not place employees on forced leave and did not necessarily cut salaries. IHG used the temporary closures of some properties for repairs, renovation and deep cleaning.
Discounts and occupancy
Accor said that occupancy at the group’s UAE hotels fell to 20% in March after reaching 80% in January and February. Corporate travelers and tourists from Europe immediately began canceling bookings. The company, which has 90 hotels in the UAE, reduced room prices by 15–20% at some properties, closed six hotels for full renovation, allowed free booking cancellations and introduced a profitability protection program.
Dimitris Manikis, president of Wyndham Hotels and Resorts in Europe, the Middle East and Africa, said that the chain cut rates by approximately 30–40% to maintain occupancy. Last month, average occupancy at Wyndham hotels was about 85%. The company also strengthened staycation offers and food and beverage outlets.
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IHG, which manages 39 hotels in the UAE, is relying not only on discounts but also on additional services for local guests, including breakfasts, spa treatments, children’s offers and in-room amenities. In August, Accor recorded an increase in occupancy to 65% thanks to guests from CIS countries, Gulf states and India.
Projects are retained, but openings are delayed
Hotel operators are maintaining expansion plans in the region, although they acknowledge delays in opening new properties. Wyndham, together with Le Park Concord, plans to open 100 budget Super 8 hotels in Saudi Arabia over ten years, but implementation timelines may change. The partners have already identified at least four locations for the first hotels.
IHG reported delays in the delivery of furniture, equipment and fittings for new hotels. The company’s portfolio includes 259 hotels in the Middle East and Africa, including 12 in the UAE and 62 in Saudi Arabia. Accor has also not halted regional projects, with more than 190 hotels planned, but postponed plans for ten hotels in Syria from 2030–2031 to 2033–2034.
