Accor’s Gulf Hotel Recovery Is A Tale Of Two Markets

Photo Credit: Mövenpick Resort Al Marjan Island in Ras Al Khaimah. Accor The U.S.-Iran war has split the Gulf hotel market in two. Resorts are seeing stronger rates as leisure travelers return, while UAE city hotels have had to cut room rates by 15% to 20% in August and September to keep occupancy within 5% of target, according to Duncan O’Rourke, Accor’s CEO for premium, midscale and economy brands across the Middle East, Africa and Asia Pacific. “It’s the city hotels where we’re down, and that’s just in the UAE,” O’Rourke told Skift. “In resorts in the Gulf, the rates are ahead.” The gap reflects a broader shift in travel demand following the war. Leisure travelers have been quicker to return to Gulf resorts, while corporate travel, which is more important for city hotels, has lagged. Accor is seeing a similar split in rates in Saudi Arabia. Its hotels in Jeddah and Riyadh are slightly behind last year because of weaker corporate business, O’Rourk