Wednesday 16 March 2011

Kempinski Mothballs Dubai Project as It Expands in Middle East - Bloomberg

Luxury hotel operator Kempinski AG is delaying a Dubai project by two years, even as it expands elsewhere in the Middle East because authorities have allowed the market to become oversupplied, according to the company’s president for the region.

A 253-room development on Dubai’s palm tree-shaped artificial island will remain a “shell” for the time being, with the opening pushed back until 2013, said Ulrich Eckhardt, the Geneva-based company’s head of the Middle East and Africa.

“I’m concerned about what I consider poor planning from those in a position to approve new hotels,” Eckhardt, 69, said in an interview in Dubai. Building permission was granted without studying “existing inventory, growth rates and future demand,” he said.

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