The year 2009 was quite challenging for the hospitality industry - globally as well as in the Middle East - with RevPAR (revenue per available room) declining by 20 per cent on an average. Though this year does not look too promising with financing unclear and other such factors, hospitality experts are expecting some level of recovery.

Medi talked to Ernst & Young's global leaders Howard Roth, Partner and Global Head of Real Estate; Dean Hodcroft, Partner and Head of Real Estate-Emeia (Europe, Middle East, India and Africa); and Paul Arnold, Principal and Transaction Real Estate Advisory Services Leader, Mena. They looked at the sector's concerns and promises this year at a regional as well as a global level.

Are markets such as Dubai and the Middle East worst hit when compared on a global scale, especially with regards to room rates.Dubai saw the most significant decline in performance across the region, marked by approximately 35 per cent reduction in RevPAR. Corporate belt-tightening, leisure travellers seeking discounted packages and booking at the last minute, as well as new supply additions resulted in significant downward pressure on occupancy and average room rates in Dubai during 2009.