There is news that more than half dozens hotels are planned to open in the Gulf over the next two years and it will put pressure on rates to decline. UAE accounts for $6.1 billion out of $8.8 billion being invested in Hotel sector in 61 hotel properties that are expected to open by the end of next year. The UAE will see the completion of 22 hotels this year and 13 next year, according to a survey by research and database company Proleads for The Hotel Show.

Armani Hotel Dubai has started taking bookings, the hotel features 8 restaurants, Armani club, Armani spa, chocolate, sweet & flower shop and accessories outlet with 24 Armani studios, 44 Armani Classic rooms, 38 Armani Premier rooms, 36 Armani Suites, 6 Armani Executive and 6 Armani Ambassador Suites and 5 Armani Signature Suites.

The Dubai Department of Commerce and Tourism Marketing has said it will reveal the new Dubai hotel classification system soon. The system, which is said to introduce several new leisure-based categories, has already been postponed twice.

Hotel occupancy rates in Dubai fell to 79 percent last year while the occupancy rate in 2007 was 84 percent and rates fell 7 percent between July and December last year. This all has happened due to new hotels in the market, financial crisis as well as lowering down in demand. The number of hotel guests last year was almost flat compared with the previous year at about seven million. According to the Department of Tourism and Commerce Marketing (DTCM), hotel room inventory rose 15.9 per cent to 49,598 last year.

It is also said that in the second half of 2008, average daily rates were exceptionally greater than the same period in 2007, although the revenue per available room was a bit lower than Dh 782. 2010 seems challenging for everyone but investors are zealous again to invest in the Middle East as new properties are supposed to be built in.