Peter Mainguy

'I have been associated with the Middle East for 20 years and working here since 1991 and have never seen better times,' says Canadian Peter Mainguy, General Manager of The Ritz-Carlton Dubai.

'We have 96 to 99 per cent occupancy levels and an average rate of $740 per night. This year September was slow but since then there have been a succession of holidays from Eid to the mid-term holidays in the UK and Russia which have kept demand at peak levels.'

One problem for the hotel is coping with guests who arrive very early in the morning on overnight flights. With lower occupancy levels a room would be free, but not in the current market.

'We have had to come up with an entire program to deal with this, and offer a free breakfast, free use of the swimming pool area and spa as well as a room put aside for changing and a pre-check-in credit facility,' says Mr. Mainguy. 'But we love problems like this.'

Hotels in Dubai are finding supply pressures acute due to project delays just in the same way that late construction projects are pressurizing local rents and house prices.

'We used to schedule for a massive number of new hotels in 2007, now we are budgeting for a sixty per cent increase in 2008, and this is the year we expect rates and occupancy to come down,' explains Mr. Mainguy. 'My forecast is for 2007 to be similar to 2006 perhaps with a slight drop in rates.

'But I have been here long enough to know that the Dubai market is different. Every time you think things will get quieter then something else happens to boost demand, so it pays to be flexible and have contingencies in hand.

'For example, right now we are sorting out the power supply for the hotel because we have heard that this will become an issue when all the construction projects behind us are handed over. But it is certainly good to have this work done.

'It transforms the location of this hotel from an isolated spot on Jumeirah Beach into a part of a dynamic downtown with a great range of shops and leisure facilities within walking distance. We think guests will love the amenities of the Dubai Marina.'

The Ritz-Carlton Dubai has decided not to proceed with its own extension plans for the time being, although there is space to allow a west-wing to be added in keeping with the design of the hotel. 'For now we are happy to live without construction,' says Mr. Mainguy.