Hotel boom in Dhaka
FAISAL MAHMUD
For long, a luxury stay in Dhaka restricted the choice to just 700 odd rooms in three hotels of international standard the Pan Pacific Sonargaon, the Dhaka Sheraton (later named as Ruposhi Bangla and now acquired by the Intercontinental Group, the first owner) and the good old Purbani.
Given the steady economic growth over the past couple of years, and the success stories in the RMG sector and other industries, Dhaka is now seen emerging as a business hub with the establishment of several international hotels including the Westin, the Radisson Blu, the Amari, the Dhaka Regency, the Six Seasons Hotel and the Le Meridien.
Industry experts say the capital now has around 2,200 five-star rooms. While these hotels achieve full occupancy only during the winter months, an average occupancy rate of around 65-70 per cent throughout the year is good enough to keep the business profitable.
An additional 1,000-1,200 five-star hotel rooms will be added as a number of international chains and local conglomerates plan to build more hotels in the capital in the next 2-3 years.
Jamuna Builders Ltd has signed a deal with US-based hotel chain, Marriott International, to set up a 700-room luxury hotel in Dhaka. Unique Hotel and Resorts Ltd, which owns Westin Dhaka, will also build a second Westin in the Banani area.
Dhaka Sheraton Hotel will be built by a local business house between the Bashundhara residential area and Purbachal. Besides, Holiday Inn will construct a hotel in Tejgaon Industrial Area.
A leading Bangladeshi footwear exporter has planned to build a Novotel Hotel in Dhaka. The Novotel Hotel chain is a subsidiary of the Accor Group of France. The Accor Group also issued a statement saying that it would start operating two other hotels under management contracts.
With a number of luxury hotels launched within a span of a decade, Dhaka may look oversaturated, but Shahid Hamid, Dhaka Regencys Executive Director believes the more the better.
With the expansion of Bangladeshs economy, more foreign businessmen and companies are coming to the country, which has led to the increase in the number of five-star establishments in Dhaka, said Hamid. Thats why renowned international chains as well as local investors are eyeing the potential of this yet untapped market.
Hamid said that the hospitality industry in Bangladesh is headed for good times like neighbouring India enjoyed a decade ago. With top RMG clients and embassy delegates, the room occupancy rate in these hotels is only going to improve in the coming years, he added.
Hamid pointed out in the hotel industry, the political and the economic situations of the country always play a very crucial role. The hotel industry is heavily dependent on tourists and business clients and any turmoil directly affects that number. So, a steady political situation is of course needed to sustain the business.
Nihad Ferdous, a hospitality industry consultant said that almost all upscale hotels are being built in the north of the city, exploiting better access to the Hazrat ShahJalal International Airport and the garment belt in the Ashulia-Savar area as well as the headquarters of major mobile telecom operators and NGOs.
These hotels are close to the capitals Gulshan, Banani and Baridhara areas, which are considered the posh Tri-state areas and remain largely unaffected by hartals, enforced general strikes that bring commercial activity in the rest of the city to a standstill.
Syed Mahbubul Islam, director, Public Relations of Tour Operators Association of Bangladesh (TOAB) said, these are exciting times for Bangladesh. The scope of business is expanding. A lot of foreign investors are showing interest in the country and these luxury hotels cater their needs.
According to the 2013 Hotel Industry Report by Bangladesh Bureau of Statistics, the countrys hotel industry has seen a consistent growth of over 7.5 per cent annually since 2008, which is fuelled by the growth of the domestic middle class and high GDP growth rate.
The direct contribution of the hospitality industry to the countrys gross domestic product (GDP) is likely to rise by 8 per cent in 2015, which was Tk 243 billion in 2014, according to industry experts.
Daniel Muhor, general manager, Westin Dhaka, said that the customer behaviour regarding upscale hotels is also changing. Hotels are much more than just a bed now. They offer lifestyle experience.
He said with the introduction of health clubs, wellness programs and outdoor activities among other things, hotels are now engaged with their guests at a more dynamic level. Besides, the restaurants are constantly changing their setup in order to successfully cater to the dynamic needs of their clientele.
Muhor said that Bangladesh has a lot of high-end customers, who have been around the world and know about the finest things in life. In our hotel, we serve the best, because we know that our customers and clients here know about the best and they want to experience the same here, he said.
Ryszard Majewsky, general manager of Six Seasons hotel, said that in Bangladesh, there is business for everybody. Its an emerging market with steady economic development. So there is demand for high-end hotels here.
He said apart from lodging and dining, the five-star hotels are catering to various other needs of the customer. Most of the hotels have walked the extra mile regarding business development for tapping the potential of the MICE (Meetings, Incentives, Conferencing and Exhibitions) sector.
These not only serve the need of the people here, but also create ways for earning money for the hotels, he said, adding that general meetings of companies, press briefings, weddings and cultural-themed occasions are revenue generators.
He also said that the hotels are serving people during special occasions. People flock to luxury hotels for celebrating Christmas, Pahela Baishakh, Valentine and Eid days and the hotels make special arrangements for them.
