“There are certain elements that need to be added, such as a new restaurant and modifications to the rooms,” said Omer Z Kaddouri, the senior vice president of UAE operations for Rotana.

Construction of the Rose Rayhaan was actually completed at the end of 2008, but to secure all the licensing necessary to open the hotel took some time, Bonyan said.

Dubai saw a sharp drop in room rates last year as hotels reduced prices to keep attracting guests amid increased competition and a downturn in global tourism. Mr Kaddouri said he expected the trend to continue this year.

“If anything, rates will go down,” he said. “With the increase of [new] hotels coming in, the hunger that every hotel has to [keep occupancy high] is driving rates down. However, you have to keep in mind that the rates we are selling at today are still very acceptable worldwide.”

Rotana said it was the largest operator by number of hotels and rooms in the UAE. It now has 11 hotels in Dubai, totalling around 3,500 rooms.

To fill them, Mr Kaddouri said the company was also aiming to attract business from new markets such as China, Eastern Europe and South America. 

The company has two more openings planned for Dubai: the budget Centro hotel in Barsha on March 1 and the long-delayed Amwaj Rotana at Jumeirah Beach Residence by April 1.

Its next alcohol-free hotel, the five-star Khalidiya Palace, will open in Abu Dhabi near Emirates Palace on April 1.

Rotana is expanding rapidly throughout the Middle East, with signings in countries including Iraq, Syria, Egypt and Saudi Arabia.

The web portal, Eye of Dubai, yesterday said it had seen a 300 per cent increase in the amount of hotel reservations made through its website around the opening of Burj Khalifa.

The National