After over pricing itself for years, the realty market in Dubai is finally seeing a correction as room rates begin to stabilize across the board. Dubai’s hospitality scene has seen significant addition of hotel rooms thanks to the investments made by Holiday Inn, IBIS and Premier Inns. Developments like the setting up of the first Easyhotel in Jebel Ali and the addition of 1400 IBIS rooms by the France based ACCOR indicate a rethink on pricing issues amongst hoteliers. With less overheads and even lower operating costs as compared to a star class hotel; budget hotels prove to be the right option for hotel chains opting for a volume-driven approach. With luxury hotels in Dubai offering room-rates at DH 250 or US$ 68 per day, the pricing is just right for budget travellers making Dubai an attractive destination for those on a $100 a day budget. With such an effective strategy in place, Dubai’s objective of attracting 15 million tourists a year will no longer be a pipe dream.
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