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Dhaka’s 5-star hotels facing a dearth of guests
Most of Dhaka’s five-star hotels are not faring well for a dearth of guests, as political uncertainties and security concerns following the August 5 student movement are putting off most events and travel plans.
Dhaka’s 5-star hotels facing a dearth of guests
Most of Dhaka's five-star hotels are not faring well for a dearth of guests, as political uncertainties and security concerns following the August 5 student movement are putting off most events and travel plans.
Industry insiders said the nine five-star hotels in Dhaka were facing difficulties as commuting within the capital has become troublesome owing to abrupt protests and untoward incidents.
Moreover, some countries such as the US, UK, and Japan have issued travel alerts discouraging their citizens from travelling to Bangladesh.
Hospitality service providers said the nine five-star hotels can host around 2,500 guests per night.
Business had slightly improved in October, but the momentum was lost in November as the risk of social unrest simmered, according to the management authorities of these hotels.
Business had slightly improved in October, but the momentum was lost in November as the risk of social unrest simmered, according to the management authorities of these hotels
"Business is yet to pick up despite a slight improvement compared to the situation in July and August," said Mohammed Nafeuzzaman, public relations manager of Pan Pacific Sonargaon Dhaka.
"Currently, our hotel occupancy rate is 30 percent, whereas it is around 65 percent under normal conditions," he said.
However, there has been a slight improvement in the occupancy rate in December, although the business has not returned to levels as per expectations, Nafeuzzaman said.
The hotel, which has 278 rooms, is located in the downtown area of the city, making it a preferred choice for business clients to hold events, he added.
According to Nafeuzzaman, revenue fluctuations in the hotel industry are normal and reflect the nature of the business.
"We do not operate purely on occupancy; we run an event-based business," he said, adding that the situation may improve in the coming days.
"Business is better than in July and August, and we turned a profit in October," he said.
Mahmud Hassan, director of sales and marketing at Dhaka Regency Hotel and Resort, said a lack of guests in mid-November had put the hotel in a precarious position.
"The number of guests increased to 80 to 100 per day in October but has since dropped to just 15 to 20," he added.
At present, the business is getting by catering to airline crews, he said.
Hassan said the number of business travellers, particularly from India, has fallen significantly due to ongoing tension between the two countries.
Moreover, very few business exhibitions are being organised, for which there are hardly any event-centric guests, he said.
"Under normal conditions, especially in winter, occupancy typically reaches 100 percent. However, there is no sign of improvement in guest numbers," he said.
Hassan also said a lack of new investment, be it by locals or foreigners, has negatively affected the luxury hotel industry. Furthermore, alerts issued by countries like the US and Japan discouraging travelling to Bangladesh have also impacted the hotel and hospitality sector, he added.
"The United Kingdom announced a travel alert on Tuesday, which has added to the challenges," Hassan said.
According to him, most of their guests usually arrive from China, India, and the US but now citizens of these countries reluctant to come on visits.
"Now the occupancy rate has dropped to 40 percent or 45 percent from around 60 percent in October," said Nazrul Islam, director of marketing and sales at Radisson Blu Dhaka Water Garden.
"Normally, our occupancy rate ranges from 78 percent to 80 percent," he said.
He said business travellers usually account for 70 percent to 80 percent of their room occupancy, but their numbers have declined significantly, severely affecting the hotel's business.
"Recovery possibility depends on stabilisation of the political and economic situation of the country," said Islam.
While there was a slight increase in business travellers in October, different incidents afterwards caused a decline again, he said.
"Currently, only 10 percent of the rooms are occupied by business travellers," he said, adding that while some representatives of non-governmental organisations were arriving from abroad, their numbers were minimal.
Islam also mentioned that airlines typically reserve 50 of the hotel's 200 rooms.
However, with fewer international flights departing from Dhaka, that number has also decreased, he said.
He said the overall situation has left the hotel unable to generate enough revenue to cover operational expenses.
"This applies to almost all five-star hotels, not just Radisson," said Islam.
However, Tuhinoor Sultana, cluster public relations manager at The Westin Dhaka, had a more optimistic view.
"Despite the overall challenging situation for international travellers, we are receiving a good number of guests from Europe and China," she said.
She also said the hotel has recorded an increase in corporate bookings for events, seminars, and symposiums over the past two months.
"We are on the path to recovery, but our performance does not reflect that of the overall the luxury hotel industry," she added.
According to Sultana, the occupancy rate at The Westin Dhaka has now increased to 70 percent, up from just 10 percent at the height of the political unrest in July-August.
She attributed this to the hotel's strategic location at Gulshan 2, an upscale area and business hub of the city.
Most of Dhaka's five-star hotels are not faring well for a dearth of guests, as political uncertainties and security concerns following the August 5 student movement are putting off most events and travel plans.
Industry insiders said the nine five-star hotels in Dhaka were facing difficulties as commuting within the capital has become troublesome owing to abrupt protests and untoward incidents.
Moreover, some countries such as the US, UK, and Japan have issued travel alerts discouraging their citizens from travelling to Bangladesh.
Hospitality service providers said the nine five-star hotels can host around 2,500 guests per night.
Business had slightly improved in October, but the momentum was lost in November as the risk of social unrest simmered, according to the management authorities of these hotels.
Business had slightly improved in October, but the momentum was lost in November as the risk of social unrest simmered, according to the management authorities of these hotels
"Business is yet to pick up despite a slight improvement compared to the situation in July and August," said Mohammed Nafeuzzaman, public relations manager of Pan Pacific Sonargaon Dhaka.
"Currently, our hotel occupancy rate is 30 percent, whereas it is around 65 percent under normal conditions," he said.
However, there has been a slight improvement in the occupancy rate in December, although the business has not returned to levels as per expectations, Nafeuzzaman said.
The hotel, which has 278 rooms, is located in the downtown area of the city, making it a preferred choice for business clients to hold events, he added.
According to Nafeuzzaman, revenue fluctuations in the hotel industry are normal and reflect the nature of the business.
"We do not operate purely on occupancy; we run an event-based business," he said, adding that the situation may improve in the coming days.
"Business is better than in July and August, and we turned a profit in October," he said.
Mahmud Hassan, director of sales and marketing at Dhaka Regency Hotel and Resort, said a lack of guests in mid-November had put the hotel in a precarious position.
"The number of guests increased to 80 to 100 per day in October but has since dropped to just 15 to 20," he added.
At present, the business is getting by catering to airline crews, he said.
Hassan said the number of business travellers, particularly from India, has fallen significantly due to ongoing tension between the two countries.
Moreover, very few business exhibitions are being organised, for which there are hardly any event-centric guests, he said.
"Under normal conditions, especially in winter, occupancy typically reaches 100 percent. However, there is no sign of improvement in guest numbers," he said.
Hassan also said a lack of new investment, be it by locals or foreigners, has negatively affected the luxury hotel industry. Furthermore, alerts issued by countries like the US and Japan discouraging travelling to Bangladesh have also impacted the hotel and hospitality sector, he added.
"The United Kingdom announced a travel alert on Tuesday, which has added to the challenges," Hassan said.
According to him, most of their guests usually arrive from China, India, and the US but now citizens of these countries reluctant to come on visits.
"Now the occupancy rate has dropped to 40 percent or 45 percent from around 60 percent in October," said Nazrul Islam, director of marketing and sales at Radisson Blu Dhaka Water Garden.
"Normally, our occupancy rate ranges from 78 percent to 80 percent," he said.
He said business travellers usually account for 70 percent to 80 percent of their room occupancy, but their numbers have declined significantly, severely affecting the hotel's business.
"Recovery possibility depends on stabilisation of the political and economic situation of the country," said Islam.
While there was a slight increase in business travellers in October, different incidents afterwards caused a decline again, he said.
"Currently, only 10 percent of the rooms are occupied by business travellers," he said, adding that while some representatives of non-governmental organisations were arriving from abroad, their numbers were minimal.
Islam also mentioned that airlines typically reserve 50 of the hotel's 200 rooms.
However, with fewer international flights departing from Dhaka, that number has also decreased, he said.
He said the overall situation has left the hotel unable to generate enough revenue to cover operational expenses.
"This applies to almost all five-star hotels, not just Radisson," said Islam.
However, Tuhinoor Sultana, cluster public relations manager at The Westin Dhaka, had a more optimistic view.
"Despite the overall challenging situation for international travellers, we are receiving a good number of guests from Europe and China," she said.
She also said the hotel has recorded an increase in corporate bookings for events, seminars, and symposiums over the past two months.
"We are on the path to recovery, but our performance does not reflect that of the overall the luxury hotel industry," she added.
According to Sultana, the occupancy rate at The Westin Dhaka has now increased to 70 percent, up from just 10 percent at the height of the political unrest in July-August.
She attributed this to the hotel's strategic location at Gulshan 2, an upscale area and business hub of the city.
