Investments renegotiated by hotel owners in Dubai

Meanwhile, the average hotel room rates all over the world, including the Middle East, have gone down in the past two years. Hotel owners in Dubai slashed rates because of this but while occupancy went up in the last two months, the revenue per available room (RevPar) has gone down.

While experts say that the low-rate trend will continue throughout the year, occupancy levels will rise. "It was not possible to maintain high room rates for many hotels. The reduction in room rates has come at a time when the hospitality sector will also witness an over supply, but I think Middle East hospitality sector will tend to benefit in the long run," said Faras Eid, Partner consulting with Deloitte & Touche, Middle East.