Radisson earns record profits in 2007 despite competition

The Radisson Water Garden Hotel in Dhaka. The hotel made record profits in 2007 despite the state of emergency and increased completion. photo: Radisson

Dhaka's Radisson Water Garden Hotel made an operating profit of more than US$6.721 million in 2007, a record for a hotel in Bangladesh, senior officials claimed yesterday.
The jump in profits at the five star hotel came despite the state of emergency in the country and increasing competition in the sector, with two new rivals, the Westin and Regency, opening last year.
“The hotel's strength is its quality services and skilled manpower,” said Saeed Ahmed, director (Sales and marketing) of the Dhaka Radisson Hotel at a press briefing marking the second anniversary at the hotel.
He said the hotel had gained about 40 percent of total market share among the five star hotels in the capital and achieved an occupancy rate of over 80 percent. Total revenues were up 40 percent to US13.377 million, also a record for a hotel in Bangladesh.
Ahmed said one reason for the increase in profits was that in 2006 the hotel was newly opened and some of its services were still under construction.
“The hotel went into full operation in 2007,” Ahmed said, describing the success of the newly built five-star hotel.
“The hotel is committed to continue offering services of an international standard in 2008 and beyond. A lot of new initiatives will be adopted by the management looking at the changing demand of international business travellers and the local community,” Andre Alex Gomez, general manager of the hotel, told reporters.
The Radisson's main competitors in Dhaka are the Sonargaon and Sheraton, located in the heart of the city, and the newly opened Westin in Gulshan. However the Radisson's closeness to the airport and the protected diplomatic zone has made it popular with business travellers who prefer avoiding traffic congestion in and around the other hotels.
As in 2006, the hotel continued to generate the largest volume of credit card transactions in Bangladesh with transactions amounting to US$ 5,919,471 (BDT 40.6 crore) within the merchant portfolio of Standard Chartered Bank in Bangladesh.
Total foreign currency revenue earned in 2007 was US$ 8,393,156 (cash US Dollar and credit cards).
When asked, Selina Momen, spokesperson of Pan Pacific Sonargaon Hotel, told The Daily Star that the hotel lost some of its business because of renovation works last year. “The occupancy rate is quite high since October,” she added.
Officials at the Dhaka Sheraton declined to comment.
Radisson was inaugurated on February 05, 2006 and went into partial operation in February 11, 2006.
The hotel is a chain of US based Carlson Hotels Worldwide. Sena Hotel Developments Limited, a local joint venture of Sena Kalyan Sangstha and Army Welfare Trust, owns the hotel.