Rotana Says Q4 Bookings Are 'Way Down' and Room Rates Drop Between 5% and 8%

Rotana Hotel Group CEO Philip Barnes said that business on the books for the fourth quarter of this year is 'way down' from the level recorded during the same period last year, according to travel industry platform Skift. Barnes explained that advance bookings have not recently been a reliable indicator of actual performance, as bookings are often made at the last minute, making forecasting for the fourth-quarter season extremely difficult.

Occupancy across the group's hotel portfolio reached the low 70s, compared to the high 70s in the corresponding period last year, while occupancy in both Abu Dhabi and Dubai approached 80%. This difference indicates that UAE markets remain the strongest within the portfolio, at a time when occupancy rates are declining in other markets across the region.

Room rates in the region dropped by between 5% and 8%, and the group does not expect a tangible recovery in prices before the second quarter of 2027, meaning, according to Barnes, that pressure on pricing could persist for more than half a year ahead. This trend reflects an imbalance between available hotel supply and current demand in several Gulf markets.

Rotana expects its 2026 profits to reach around 80% of its 2025 profits, representing a decline of roughly one-fifth in annual profitability. This trajectory puts pressure on expansion plans for hotel operators in the region and ties the sector's recovery to a strong rebound in demand during the upcoming peak season and a gradual improvement in rates over the following year.

What do these terms mean?

Hotel Occupancy: The percentage of occupied rooms out of total available rooms, used to measure demand for the hotel. Advance Bookings (On the books): Confirmed bookings for a future period prior to its start. Quarter: A three-month period into which the fiscal year is divided.