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‘AI Is Not Going to Smile at You’: Rotana CEO on UAE Hotels, Recovery and Growth

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Artificial intelligence may transform parts of the hotel industry, but it will not replace the human connection that sits at the heart of hospitality, according to Rotana CEO Philip Barnes.

Speaking during Arabian Travel Market 2026, Barnes said Rotana is using AI to improve operations and customer interactions, but believes technology cannot replace the personal service provided by hotel employees. The comments come as UAE hotels continue recovering from the disruption caused by the regional conflict earlier this year.

‘AI Is Not Going to Smile at You’

Barnes said AI can make hotel operations more efficient, from handling enquiries and bookings to reducing administrative work.

However, he does not see technology replacing receptionists, doormen, restaurant staff or other employees who directly shape the guest experience.

Rotana is already using AI tools on its website and testing AI-powered telephone services capable of communicating with callers in different languages. Barnes said the technology should help employees do their jobs better rather than remove the human element from hospitality.

UAE Hotel Demand Is Recovering

Rotana experienced a sharp decline in business after the regional conflict began at the end of February, with March and April proving particularly difficult.

The company changed its commercial strategy quickly, targeting domestic and regional travellers through staycation offers and encouraging hotels to capture available demand from across the UAE and Gulf.

By August, Rotana's UAE hotels were operating at more than 80% occupancy, with Dubai reaching around 82%, while room rates had also begun recovering. Barnes said business had strengthened consistently from May through August.

Staycations Helped Hotels Through the Downturn

One of the most important changes during the disruption was the shift toward regional tourism.

With international flights reduced and airfares becoming more expensive, UAE residents and visitors from nearby Gulf markets increasingly chose to holiday closer to home. Rotana's resorts in destinations such as Fujairah and Saadiyat benefited from that demand.

City hotels also saw stronger business from local residents and regional travellers, while restaurants experienced increased demand from people living in the UAE.

The experience demonstrated how domestic and short-haul tourism can provide a buffer when international travel faces sudden disruption.

Rotana Chose to Retain Its Workforce

While many businesses faced uncertainty during the downturn, Rotana avoided layoffs and redundancies.

The company instead retained its teams, although employees accepted temporary reductions in income during the most difficult period. Barnes said keeping experienced staff in place was important because the business would eventually recover and hotels would need those employees to deliver consistent service.

Rotana currently has around 10,000 employees, and Barnes expects the group to require another 5,000 workers over roughly six years as new hotels come online.

40 Hotels in the Development Pipeline

Despite the recent disruption, Rotana continues to expand.

The company has around 40 hotels and 8,334 rooms under development across markets including Saudi Arabia, Egypt, Africa and the CIS. Saudi Arabia accounts for 10 of those properties and more than 1,400 rooms.

Rotana's expansion strategy reflects continued investment in hospitality across the region, particularly in Saudi Arabia, where new tourism destinations and large-scale developments are creating additional demand for hotel capacity.

The group is also considering opportunities in markets including Syria, Egypt, Pakistan and Africa. Barnes said Rotana is already in talks about potential projects in Syria following the easing of international restrictions.

Global Distribution Becomes More Important

Rotana is also working to broaden the sources of business coming into its hotels.

Its membership in the Global Hotel Alliance gives the group access to a loyalty ecosystem of around 35 million members, compared with roughly 850,000 members under its former Rotana Rewards programme, according to Barnes.

The wider network gives Rotana access to travellers from more international markets and reduces reliance on individual source countries at a time when geopolitical events can quickly affect travel patterns.

Growth Comes With Greater Uncertainty

Although demand has recovered, Barnes said forecasting remains difficult because guests are booking much closer to their travel dates than before.

The unpredictability is linked partly to uncertainty over air connectivity and how quickly international airlines will restore services to the region. This makes it harder for hotels to plan staffing, pricing and inventory months in advance.

Still, Barnes expects the UAE hospitality market to continue improving as international confidence returns.

Rotana Looks Beyond the Recovery

For Rotana, the recovery is happening alongside a broader transformation in the hospitality industry.

Technology is becoming increasingly important for efficiency, personalised service and hotel management, but the company continues to place its employees at the centre of the guest experience.

Barnes' message is that the future hotel will likely be more digital, but not necessarily less human.

As UAE tourism demand strengthens and Rotana advances its development pipeline, the company is preparing for a market where AI handles more of the routine work while people remain responsible for the moments that define a guest's stay.


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