Kempinski Bets on Middle East Rebound as Occupancy Dips Below 20%
Photo Caption: Kempinski Hotel Mall of the Emirates in Dubai.
Skift Take
While most hospitality executives have been in damage-control mode, Kempinski’s CEO envisions an opportunity. With rates held, staff retained, and a development pipeline intact, the company is placing a long-term bet on the Middle East.
Luxury hotel group Kempinski is treating financial nervousness during the Iran war as an opportunity. “Anytime there is uncertainty, banks get nervous, so we see opportunities,” CEO Barbara Muckermann told Skift. “Our focus remains around investment and expansion in the Middle East, and we see this as an opportunity to accelerate our growth.”
The comments came shortly before the U.S. and Iran agreed a ceasefire on April 7 that could, if enduring beyond an initial two weeks, provide relief to hospitality businesses in the region that have been hammered.
Kempinski's Middle East properties — 17 hotels spanning the UAE, Saudi Arabia, Oman, Qatar, Egypt, Lebanon, Jordan, and Iraq — are currently running “below 20% occ
