+- Pakistan Real Estate Times - Pakistan Property News (https://www.pakrealestatetimes.com)
+-- Forum: Pakistan Real Estate / Property News (/forumdisplay.php?fid=1)
+--- Forum: Latest Pakistan Property & Economic News (/forumdisplay.php?fid=4)
+--- Thread: Five-star hotels suffer low occupancy (/showthread.php?tid=3353)
Five-star hotels suffer low occupancy - LahoreEstate - 02-28-2009 10:34 AM
KARACHI: Five-star hotels operating in Pakistan have also fallen victim to the deteriorating hotel industry owing to world economic recession and slowdown in Pakistan’s economy.
Pakistan Hotels Association General Secretary Fouzia Azhar told The News that Sheraton Hotel and Towers is the only internationally-managed five-star deluxe hotel in Pakistan, which due to current situation of the country, has been running below 35 per cent occupancy rate for the last two months and incidents are evident where occupancy has dropped to seven per cent.
Out of five restaurants, three were forced to close down their lunch menus due to low occupancy and the low traffic of guests and the hotel is unable to absorb expenses and is running with huge losses.
External Auditors A F Ferguson & Company Chartered Accountants have also raised their concern over the accumulated losses, according to the information provided by PHA.
Another five-star hotel, Pearl Continental has closed three of its floors in the last five months, whereas one of its restaurants has been inoperative for the last seven months.
Food coverage in restaurants has dropped to 50 per cent. However, the PC management states that in spite of the drop in business, it still maintains the building with five-star qualities and continues to pay salaries of staff members hired for at least 80 per cent occupancy rate.
http://www.thenews.com.pk/daily_detail.asp?id=164871