Dhaka hotel market enters competitive phase as demand diversifies

Dhaka : Dhaka's upscale hotel sector is entering a period of stronger competition and changing demand, with corporate travel remaining important while meetings, events, dining and leisure are taking a larger role, according to Karthi VK, General Manager of Crowne Plaza Dhaka Gulshan.

Karthi said the market is showing signs of sustainable recovery as international hotel brands add new capacity. While the additional supply is putting pressure on existing operators, he believes it also reflects Dhaka's potential as a business and meetings destination.

At Crowne Plaza Dhaka Gulshan, corporate and international business travelers continue to form the core customer base. However, demand from MICE, social events, food and beverage and staycations is becoming increasingly significant.

Corporate demand remains resilient

Gulshan's concentration of multinational companies, embassies and expatriate communities continues to support business travel, Karthi added. However, corporate clients are becoming more cautious about spending.

Karthi VK

Companies are consolidating trips, optimizing length of stay and paying closer attention to accommodation costs. While this has not significantly reduced room nights, it has created pressure on room rates and average daily rates.

The hotel is responding by protecting its traditional corporate business while pursuing demand from new segments, including domestic leisure, weddings, celebrations and events.

Karthi mentioned guests are increasingly evaluating hotels based on overall value and experience rather than room price alone.

F&B, MICE emerge as growth areas

Food and beverage has become a major part of the hotel's commercial strategy, rather than simply an additional service for room guests.

The hotel sees growing demand for quality, authenticity and distinctive dining experiences from both visitors and Dhaka residents. Karthi claimed the property plans to continue developing culinary concepts, seasonal activations and experiences that can attract customers who are not staying at the hotel.

MICE is another area he sees as having substantial potential. Dhaka's corporate base and improving international connectivity provide a foundation, but he said destination marketing, infrastructure, venues and public-private cooperation will be necessary to turn the city into a stronger regional meetings destination.

"Hotels can provide experience, but the destination must work as a whole," he expressed.

Managing costs without cutting quality

Hotels are facing higher expenses for food, energy, labor, logistics and imported products. At the same time, customers are demanding greater value.

Karthi also added Crowne Plaza is focusing on procurement, inventory management, portion control, menu engineering, energy efficiency and workforce productivity to manage those pressures.

He further mentioned the objective is to remove waste rather than compromise the quality of products or services.

Technology is also becoming more important as guest expectations evolve. Business travelers increasingly want seamless digital services, flexible workspaces and personalized experiences, while wellness and leisure are becoming more closely integrated with business trips.

More hotels could expand market

Several international brands are increasing Dhaka's hotel room supply, raising concerns about potential oversupply. Karthi acknowledged that new capacity could temporarily pressure occupancy and room rates.

However, he noted international brands also bring investment, global standards and greater visibility, which can help generate new demand.

He believes the key question is not simply whether Dhaka has enough rooms, but whether the city can attract more business travel, MICE activity, leisure visitors and destination experiences.

Focus on people, technology, experience

Looking three to five years ahead, Karthi remains optimistic about both Crowne Plaza Dhaka Gulshan and the broader hospitality market.

The hotel plans to focus on its people, technology, guest experience and F&B while strengthening its commercial position.

Karthi also claimed Bangladesh already has significant tourism assets, but the industry needs to connect and promote them more effectively to international travelers.

For Dhaka's hotels, he concluded, long-term success will depend less on simply adding rooms and more on creating compelling reasons for people to visit, stay and return.