An increasing number of budget hotels are targeting the UAE in hopes of attracting business travellers who have been trading down to less expensive accommodation as a result of corporate belt tightening brought on by the financial crisis.
Over the past decade, the UAE positioned itself as a luxury destination with the launch of some of the most expensive hotels in the world. In 2008, the average daily room rate in Dubai was an eye-popping $308.51, due partly to the fact that hotel supply in the emirate was relatively small and low-cost accommodation was scarce.
However, in the past year a number of budget hotels have entered the country looking to address this gap in the market. These hotels are looking to attract large numbers of business travellers, as many companies have instructed their employees to trade down from five-star hotels when taking business trips.
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