Incentives, cheaper stays and cost cuts: How hotels managed war shock in the region
International hotel brands operating in the Middle East have been moving swiftly to deal with the shock caused by the Iran war . They have cut costs wherever possible, shifting to focus on the local market by offering deals and packages for staycations . Others have temporarily shut some hotels for refurbishment. “We did not furlough any team members, not in the field, not in the office,” said…
International hotel brands in the Middle East have swiftly responded to the shock caused by the Iran war by cutting costs and shifting focus to local markets. IHG Hotels and Resorts, for instance, did not furlough any team members. Instead, they temporarily closed some hotels for refurbishment, which proved beneficial. Accor, operating 90 hotels in the UAE, cut room rates by 15 to 20 per cent and closed six hotels for refurbishment, offering free booking cancellations.
Wyndham Hotels and Resorts, meanwhile, prioritized safety and kept hotel operations running, offering significant rate reductions of 30 to 40 per cent. Dubai-based JA Resorts and Hotels, on the other hand, is repositioning itself as a provider of unique experiences, such as sports complexes and meetings, to maintain profitability.
Despite international airlines suspending flights to the region and a decline in leisure tourism, hotel operators have largely managed to maintain operations, with only minor delays expected for upcoming projects.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
