Hotel business is back on track after a three-month-long political unrest, with losses in the first quarter now yielding to booming business.
Most five-star hotels in the capital have gained momentum towards their business and see a growing future in the upcoming months.
According to sources, five-start hotels enjoy 95% room occupancy while due to political unrest that spanned around three months the occupancy rate plummeted between 40% and 50%.
‘’After an apparent end to political crisis, hotel business is back on track and it is a very positive sign for hotel business. It is also a sign of roaring tourism trade,’’ said Kazi Wahidul Alam, tourism expert & editor of a travel magazine, The Bangladesh Monitor.
Lots of foreigners are coming to Bangladesh in connection with mega projects like Padma Multipurpose Bridge Project, Nuclear Power Plants and upcoming metro rail projects, he added.
“Even I failed to book hall room of Sonargaon Hotel for a Next year event.’’
Salman Kabir, assistant director of Pan Pacific Sonargaon Hotel, said: “One of the drivers of business growth is the increase in foreign businessmen visiting the country. International cricket venue is also a platform for tourist attractions.”
Currently, the occupancy rate in Westin Dhaka is around 100% while Radisson Blu Water Garden 95% and Pan Pacific Sonargaon 95%. Besides, four-star and three star standard hotels’ occupancy rate is also satisfactory.
A number of five-star hotels are in the pipeline to commence their operations.
Of them are Le Méridien, Marriott Patriot, Sheraton, JW Marriott. To tap the growing demand for accommodation, these hotels will start operation within a year, said sources.
Right at this moment, there is a need for 4,500 five-star hotel rooms while currently the capital city has around 1,300 five-star rooms, industry experts said.
They added that the hotels enjoy full occupancy only in winter and an average occupancy rate of around 75% can easily make hotel business profitable.
The number of five-star hotels is increasing at a rate of 15% a year and it will double within the next three years, according to an expert.
Ashwani Nayar, general manager of Le Méridien Hotel, said: “Bangladesh is a promising market and looking at this market we are trying to capture the country’s hospitality business in the long run.’’
In recent years, the hospitality sector in Bangladesh has boomed in the five-star hotel segment. Only three new five-star hotels opened in Dhaka in the past five years, he added.
Dr Mustafizur Rahman, executive director of Center for Policy Dialogue, said Bangladesh has economic potential and hotel business will be booming in terms of tourist attractions and growing tourism industry.
‘’After the devastating earthquake in Nepal, Bangladesh would be a potential tourist hub if we can ease the visa system.’’
Md Al-Amin, head of sales, Westin Hotel, said as the number of affluent visitors, including investors, top officials from banks and shipping industry, is increasing fast in the region, there is no alternative to establishing more hotels.
