Dubai Hotelier Says Rising Costs Are Squeezing Margins Despite Strong Demand

JS Anand, founder and CEO of Dubai-based mid-scale operator Leva Hotels, says rising operational costs are squeezing profit margins for hotel operators, even as guest volumes continue to grow.

“The costs are going higher, whether it’s utilities, gas, staffing or compliance requirements,” Anand said. “So our margins as hoteliers are eroding, although guest volumes are increasing.”

Operational pressures extend beyond utilities and staffing, he added, pointing to rising government fees and compliance costs. These include tourism and municipality fees, CCTV requirements, trade licenses, and the to