Sofitel, the luxury brand of international hotel chain Accor, quit Pakistan earlier this year because of falling room occupancy rates in the country as law and order has deteriorated, said Abdul Rehman Naqi, a managing partner in the project.
“There is really nothing we could do about it. Accor has pulled out of four projects in the country,” he said. “But we have other plans now. We are looking at using all the floors in a different way.” In 2008, Accor cancelled the deal with the Karachi Airport Hotel, calling off the contract for the use of its Mercure brand.
Project sponsors are now in negotiations with an international business club. Naqi clarified that The Mall is not the official name of the project. “Hopefully, we will be able to finalise the details in the next 15 days,” he said. “The club will have luxury facilities like a spa, furnished rooms and restaurants.” Sponsors are still eyeing top quality. Office space will be offered to top-notch clients. Sofitel has backed off at a point when all 27 floors have been constructed. Launched amid much fanfare in 2006, the Sofitel Towers Karachi was supposed to become the grandest building in Pakistan’s largest city. It was supposed to be inaugurated by the middle of last year.
Every large hotel chain has seen room occupancy rates fall by half, a level which makes it increasingly difficult for a business to remain afloat. Hotels have started relying on rental incomes from their halls that serve as spaces for seminars and business conferences, weddings and receptions. Management has also started aggressively advertising restaurants. Accor has over 4,000 hotels around the world and owns brands such as Sofitel and Novatel.
Published in The Express Tribune, October 11th, 2011.
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