According to Sidharth Mehta, partner, head of building, construction & real estate, KPMG Lower Gulf, COVID-19 is already having a significant downturn effect on the global and regional hospitality sector.
We have witnessed temporary closures of hotels, particularly in Asia, while some have been re-purposed for humanitarian efforts.
“In the UAE, hotel occupancy rates in Dubai and Abu Dhabi declined by approximately 60-70 percent in March compared with the same period in 2019, and average daily rates have weakened substantially,” he explained. He added: “Some hotels – especially independent ones which are not affiliated with a large operator brand – are likely to make important decisions to overcome the current situation. Key questions remain: how long will COVID-19 last and to what extent will global travel rebound once infection rates slow?”Add to Favorites