Dubai hotels cash in on Christmas lunch rush

Luxury hotels in Dubai are cashing in on seasonal demand by charging up to 30 percent more than the cost of a standard Friday brunch for guests attending on Christmas Day. A poll by Arabian Business found the cost of festive lunches ranged from AED295 ($80) to nearly AED800 ($217), nearly a third more than a typical brunch, as outlets moved to capitalise on holiday revenues. Lunch at Park Hyatt’s French restaurant Traiteur is priced at AED795, an AED200 increase on the cost of attending brunch at the eatery. At the award-winning Spectrum on One restaurant at Dubai’s Fairmont Hotel, diners will pay out AED695 for a ‘bubbly’-themed lunch on Dec 25, a 26 percent rise on the ‘premium bubbly brunch’ offered each Friday. Mid-range hotels are also cashing in on the trend, with the Media One hotel placing a 34 percent premium on its usual brunch price of AED298, taking the cost of lunch to AED399. Hospitality analysts say the increase in charges reflects a move by hotels to counteract a slump in occupancy rates over the holiday period. “Traditionally, Christmas is a low season as regards hotel occupancy in Dubai, as few people from the Western world are travelling,” said Guy Wilkinson, managing partner of hospitality firm Viability. “Hotels make good profits on these festive meals, whether buffets or set menus, which helps offset the typically depressed occupancies at the time.” The rise in price doesn’t appear to have deterred guests. Venues such as Amaseena at the Ritz Carlton JBR and restaurants at Jumeirah’s Al Qasr resort are already fully booked for Dec 25, with managers now offering waiting lists spots to would-be diners. Their popularity is a reflection of the year-round demand for brunches among largely expatriate residents in Dubai, a market that has offered a buffer against diminishing room revenues. “As a general rule, business hotels tend to have lower occupancies at the end of the working week,” said Chiheb Ben Mahmoud, head of hotel advisory at Jones Lang LaSalle in the MENA region. “This makes brunches a win/win situation [for the hotels and the brunch-goers].” Revenues at UAE hotels took a hit in the wake of the global economic crisis, which helped trigger a country-wide decline in tourist figures. Occupancy rates in Dubai hotels fell 25 percent in the wake of the downturn, with only a small increase in visitors seen between 2009 and 2010 according to a report by Deloitte. The same year, the average rate per room also dropped 4.4 percent to $146, the company said. Data from STR global said revenue per available room in Abu Dhabi – an industry benchmark - plummeted 45 percent in March 2010 compared with the same month in 2009, the largest year-on-year decline in the MENA region. Chairman of the Jumeirah Group Gerald Lawless said last month it was unlikely the peak hotel rates of 2007 would be hit again, but said 2011 had been positive for the market.