Asia -  Dhaka, Bangladesh

Dhaka has a very small base of branded hotel rooms; as of 2014, the four-star and five-star categories collectively comprised an approximate inventory of 1,000 rooms. The year 2015 saw the addition of the 304-room Le Meridien whose initial year performance resulted in the marketwide occupancy dropping by approximately 12%. ADR also corrected slightly during this time leading to a RevPAR decline of approximately 15%. Consequently, Dhaka witnessed the sharpest decline in hotel values in 2015 (26%) amongst the cities being covered in this paper. However, given that the city has a low base of hotel rooms historically and the real estate rates and space constraints serve as a high barrier to entry market, hotel values have always steadily grown and this trend is likely to continue in the short term as well. The drop in valuation with the opening of the Le Meridien serves as a case in point to the highly volatile nature of the Dhaka market, which is susceptible to sharp demand-supply imbalances. Future hotel values are expected to see fluctuations in the years ahead as there are several hotel projects either under construction and/or speculated to commission over the next 2-3 years.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Dhaka RevPAR Change

Dhaka RevPAR

Year RevPAR
2013 110.29
2014 118.92
2015 101.12
2016 109.21
2017 (f) 106.54
2018 (f) 113.03

For more information, please contact:

Achin Khanna, MRICS
akhanna@hvs.com
  • +91 124 4616000 (w)
Rishabh Thapar
rthapar@hvs.com
  • +27 0 792790584 (m)