FIVE Hotels Results Show Some ‘Potential Cannibalization’ in Dubai
Skift Take
Local Dubai hotel group FIVE reported financial results Monday that show the company has continued to benefit from the emirate’s robust tourism sector, but also that it may need to look elsewhere for growth.
FIVE chairman Kabir Mulchandani pointed to lower room revenues at the flagship FIVE Palm Jumeirah, and attributed the dip to “potential cannibalization” from the opening in March of FIVE Luxe, another beach hotel less than 20 minutes away.
“There have been some challenges we’re facing at FIVE Palm Jumeirah,” Mulchandani said, adding: “It’s primarily driven by a form of potential cannibalization. When FIVE LUXE opened, we have two hotels on the beach.”
“We’ve been focusing a lot more on our direct business [and] we’ve reactivated our tour operators to widen our net, because we now understand the level
