Rotana CEO Says AI Won’t Replace Human Hospitality

Rotana’s chief executive argues that artificial intelligence cannot substitute the human element of hospitality, even as the UAE hotel sector recovers to high occupancy levels. The group’s swift strategy shift to staycations and local demand helped it rebound from the early 2026 conflict shock, whi…

By Felo News Desk · Published Sat, 19 Sep 2026 10:10:40 GMT

When the US‑Iran war erupted in February 2026, the UAE hospitality sector faced a sudden and severe shock. Rotana Hotels & Resorts, headquartered in Abu Dhabi, was among the first to feel the impact, with international leisure traffic plummeting and a sharp drop in revenue. By March, the group’s business had slipped, and the decline continued through April.

Rapid Strategic Pivot

Instead of waiting for foreign tourists to return, Rotana’s CEO, Mark Barnes, launched a staycation programme and re‑aligned its global sales team to capture every available segment of demand. "Go after every piece of revenue you can," Barnes told Gulf News at the Arabian Travel Market 2026. "Don’t get proud. Don’t think about it. Does it make sense? Can I take it? Yes, I can. Then go for it."

The company’s focus shifted to domestic and regional travellers – Emiratis, Saudis and other GCC nationals – who were reluctant to travel abroad amid rising airfare costs and reduced airline services. Resorts in Fujairah and Saadiyat, as well as city hotels in Dubai and Abu Dhabi, saw a surge in bookings from July and August, with many guests choosing to stay within the Emirates rather than fly overseas.

Occupancy and Financial Recovery

By August, Rotana’s UAE properties were operating at more than 80% occupancy, a level that matched the performance of its flagship hotels in Dubai and Abu Dhabi. Room rates, which had fallen sharply at the start of the disruption, began to recover as demand increased. The group now projects its 2026 net operating profit to reach about 80% of its 2025 level, a year Barnes described as a "banner year."

People First, Even in a Tech‑Driven Age

Despite adopting AI tools on its website and piloting AI‑powered phone answering, Barnes insists that technology will never replace the personal touch that defines hospitality. "AI will help us facilitate the process. It will ease the bureaucracy. It will help us to do a better job of looking after guests," he said. "But it won't replace that person who makes the bed, cooks the breakfast, serves the breakfast."

During the downturn, Rotana chose not to lay off its workforce, retaining about 10,000 employees and planning to add 5,000 more over the next six years to support expansion projects in Saudi Arabia, Egypt, and other markets. The decision was driven by a belief that a familiar, friendly face at the front desk enhances the guest experience and protects the brand’s reputation.

Expansion and Diversification

Rotana’s growth strategy remains ambitious. The group currently has 40 properties and 8,334 keys under development, with 10 properties and 1,404 keys planned in Saudi Arabia alone. Projects in Africa, Egypt, and Oman are also on the horizon, while the brand continues to explore opportunities in Pakistan.

The hotel group has joined the Global Hotel Alliance, giving it access to a loyalty ecosystem of about 35 million members, compared with its own 850,000 members under the Rotana Rewards programme. As a result, 50–60% of business now comes through channels managed by the brand, including global sales, partnerships, its website, and loyalty programme.

Uncertain Forecasts and Future Outlook

Forecasting remains challenging as international travellers still book at short notice, driven by uncertainty over air connectivity and the resumption of services by global carriers. Rotana’s hotels often have little business on the books until the last minute, making demand prediction difficult.

Despite these uncertainties, Rotana’s owners remain confident. Barnes noted that at least 70% of the group’s hotels are ranked either first or second in their competitive sets year to date. Continued investment in existing properties, such as the Fujairah resort and Cove Rotana in Ras Al Khaimah, demonstrates the group’s commitment to maintaining high standards while expanding its portfolio.

In a world where technology is reshaping the hospitality industry, Rotana’s CEO maintains that the core proposition remains unchanged: it is how guests feel that matters most. "It doesn't matter what you say, doesn't matter what you do. It's how you make people feel, and that's what matters," Barnes concluded.

Key facts

Rotana rebounded to 80% occupancy after the 2026 US‑Iran war shock
CEO Mark Barnes pivoted strategy to focus on staycations and local demand
The group retained its workforce, emphasizing the value of personal service
AI is used for efficiency but not to replace staff
Rotana continues aggressive expansion across the Gulf, Africa, and beyond

Why it matters

Rotana’s stance highlights the enduring importance of human interaction in hospitality, even as AI tools become more prevalent. The group’s recovery strategy offers a blueprint for hotels navigating geopolitical disruptions and shifting travel patterns.

Frequently asked questions

How did Rotana respond to the 2026 war‑related downturn?

The group launched a staycation programme, refocused its sales team on local demand, and avoided layoffs to preserve customer experience.

What role does AI play in Rotana’s operations?

AI tools are used on the website and for multilingual phone answering to streamline processes, but the company believes human staff are essential for guest service.