The four key elements to success for investors and owners in the current market are location; brand; operator strength; and selling strategies. 

CBRE Hotels vice president Arnaud Andrieu said Dubai had been particularly affected by current economic issues, with a clear drop in occupancies and ADR in Q1 2009, compared to the same period last year. 
 
Conversely, he pointed out that Muscat, Abu Dhabi and Saudi Arabia were all remaining strong – a quality he put down to a different approach to tourism and a focus on sustainable growth. 
 
In the case of Abu Dhabi, Andrieu explained that the emirate offers 12-15,000 rooms for a market made up of 80% leisure travellers. 
 
“Abu Dhabi has seen a slight drop in occupancy of about 3%, but ADR has increased more than the occupancy has decreased, so there is still revPAR growth,” he said. 
 
The steady growth of Abu Dhabi, Muscat and Saudi Arabia was a clear sign to investors that it was prudent to focus outside of Dubai and the UAE in general, according to Andrieu. 
 
“For the past five years, Dubai has been the major focus of investment,” he said. 
 
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“Saudi Arabia, Abu Dhabi and Muscat are all structurally different markets with different segmentation. 
 
“Muscat’s market is made up of 60% leisure travellers who stay in four- and five-star hotels. 
 
“Saudi Arabia has a strong demand for business and religious tourism – and its economy is doing very well.” 
 
He said owners should consider the strength of their selling team; their reservation system; their revenue management team; and their fidelity programme. 
 
"Look at how much you are paying to get guests into your hotel for the first time; and the strategies for building loyalty and repeat business," said Andrieu. 
 
He warned that slashing rates did not guarantee a boost in occupancy levels and owners should instead focus on maintaining their property and strengthening their relationships with operators, particularly those with strong brand recognition in the market.