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Central Hotels Addresses Market Challenges with Strategic Solutions

While many in the hospitality industry are nervous about the increasing inventory of hotels in Dubai and the impact it continues to have on room rates, Ammar Kanaan, Group General Manager of Central Hotels, remains optimistic.


So, despite the challenges of mounting competition, how does Central Hotels plan to boost profitability having just added two new spectacular 5-star hotels to the portfolio namely the Canal Central Business Bay and Royal Central The Palm?

Ammar stressed, “It is no doubt a challenging period for hotels where the market is facing multiple issues. Rising cost of operations and increasing pressure on pricing due to oversupply of rooms is adversely affecting profitability of hotels. However, Dubai continues to make great strides in growth and diversification of tourism. On our part as operators it is vital that we challenge ourselves as an industry to respond to the market conditions with strategic and innovative solutions. This will not only allow us to reduce our operating costs but will stimulate our business for long-term sustainability.”

According to Ammar, “To overcome challenges hotels need to take the right measures. At Central Hotels we have decided to outsource functions such as engineering, IT, house-keeping, security and F&B with highly reputed and reliable partners.  This has resulted in a positive impact on our business as payroll is the largest cost center for any hotel operation. Moreover, in addition to reducing costs outsourcing also allows us to elevate quality of service for our guests with specialized companies giving us a competitive edge.”

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