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Oberlin says simple devices such as A/C modules, LED lights and water aerators can dramatically reduce hotel utility bills Oberlin says simple devices such as A/C modules, LED lights and water aerators can dramatically reduce hotel utility bills

UAE Hotels Must Become Sustainable – Farnek

UAE hotels facing Ramadan-related revenue losses need to become more sustainable and cut operating costs, according to UAE-based facility management and sustainability consultancy, Farnek.

Markus Oberlin, CEO, Farnek, stated, “During Ramadan the waste per guest, per night can increase by as much as 50 percent, much of it uneaten food and that’s against a backdrop remember, of lower occupancies and softening rates. A sound recycling procedure can reduce waste by 25 percent.”

Chris Hewett, director, TRI Consulting Middle East, a boutique management consultancy specialising in hotels, leisure and real estate, recently estimated RevPAR this year could drop by as much as seven percent compared to 2017.

The latest first quarter industry figures released by STR Global, a hotel market data and benchmarking company, support TRI’s forecast with RevPAR down 2.6 percent and four percent in Dubai and Abu Dhabi respectively.

Oberlin added that a hotel with 250 rooms, running at 80 percent occupancy, with an average rate of AED750 (USD204.19), could lose AED3.8 million (USD1.03 million) revenue over the year without taking into account their food and beverage operation, VAT or inflation.

He suggested more effective use of water and electricity resources as well as outsourcing staff during quieter periods were the way forward.