Hotels

Kempinski Official Forecast Delayed Recovery

General Manager of Kempinski Mall of the Emirates, Holger Schroth, said they have cut their average room rate by 12 percent compared to 2008 due to the competitive environment caused by the economic downturn.  He said everyone is hoping that the crisis is bottoming out, but “I am not  sure.  Regarding the achievable room rates, in 2010 we will find ourselves on a level between those of 2008 and 2009.  To get back to the rates we used before, it will take time”

Mr. Scroth said their revenues have gone down because of the crisis.   They expanded in the market but also cut manpower, and looked for synergies between departments. He expressed satisfaction with the results – average occupancy rates at The Kempinski Mall of the Emirates were 75 percent, an acceptable result for the industry under the circumstances.

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