Dhaka's luxury hotels are experiencing a decline in guest occupancy
Most of Dhaka's five-star hotels are struggling due to a shortage of guests, as political uncertainties and security concerns following the August 5 student movement deter events and disrupt travel plans.
Industry insiders report that Dhaka’s nine five-star hotels are grappling with challenges as commuting within the city has become increasingly difficult due to sudden protests and untoward incidents. Additionally, travel advisories issued by countries such as the US, UK, and Japan have discouraged international visitors from traveling to Bangladesh, exacerbating the situation.
Hospitality service providers state that these hotels collectively have the capacity to accommodate around 2,500 guests per night. While business showed a slight improvement in October, this momentum was lost in November amid heightened risks of social unrest, according to hotel management representatives.
Mohammed Nafeuzzaman, public relations manager of Pan Pacific Sonargaon Dhaka, reported an occupancy rate of just 30%, significantly lower than the usual 65% under normal circumstances. "Although December has seen some improvement, the business is still below expectations," he added. Despite the challenges, Nafeuzzaman remains cautiously optimistic, noting that the hotel operates on an event-driven business model and has the potential for recovery.
Mahmud Hassan, director of sales and marketing at Dhaka Regency Hotel and Resort, highlighted a stark drop in guests from mid-November, with daily guest numbers plummeting from 80–100 in October to just 15–20. The hotel is now largely reliant on airline crews. A significant decrease in business travelers from India, coupled with fewer exhibitions and events, has further compounded the decline.
At Radisson Blu Dhaka Water Garden, Nazrul Islam, director of marketing and sales, reported that occupancy rates had fallen to 40–45% from the October average of 60%. Normally, winter brings full occupancy, but the current season has not followed this trend. Islam cited a sharp decline in business travelers, who typically make up 70–80% of their guests, as a major factor impacting revenue.
He also noted that political and economic stability are essential for recovery. International flight reductions have further decreased airline crew bookings, a significant source of revenue for the hotel.
On a more optimistic note, Tuhinoor Sultana, cluster public relations manager at The Westin Dhaka, shared that the hotel has seen a steady recovery, with occupancy rates now reaching 70%, up from 10% during the peak of unrest in July and August. Sultana attributed this to The Westin’s strategic location in Gulshan 2, an upscale business district, and a rise in corporate event bookings over the past two months.
Despite The Westin's relative success, Sultana acknowledged that the broader luxury hotel industry in Dhaka continues to face significant hurdles.
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