Farnek sees surge in full-department hotel outsourcing enquiries

CONSUMER NEWS

Sep 17, 2026 11:14 AM

Farnek, a UAE-based smart and green facilities management (FM) company, has seen a sharp rise in enquiries in recent months from hotel owners and operators seeking to outsource entire hotel departments end-to-end.

This approach differs from the traditional supplementary staffing model, where FM partners are used mainly during peak periods.

As air connectivity remains disrupted and regional uncertainty continues, UAE hospitality stakeholders are re-evaluating how they run and pay for functions currently managed in-house. Instead of only outsourcing limited support, more hotels are shifting toward transferring full departments to specialist providers.

Industry observers describe this as a structural change in how UAE hospitality operations are managed.

Historically, hotels maintained a core in-house team—typically covering maintenance, housekeeping, stewarding, and guest services—while relying on FM partners only to fill gaps during high-demand periods.

Now, a growing number of operators are moving toward outsourcing whole departments to optimise cost efficiencies and free hotel management to focus on revenue priorities such as maximising rooms and F&B output while improving the guest experience.

The first half of 2026 highlighted how weakened demand is impacting hotel revenues. Consultancy Cavendish Maxwell reported that occupancy levels in Dubai hotels declined by 30.3% year-on-year, while average daily rates fell by 7%. For hotels carrying fixed staffing models, those pressures intensify because labour and operational costs remain on the bottom line even when demand softens.

Staffing costs are also increasing, according to international benchmarks. HotelData reported that labour costs per occupied room rose by 12.8% in 2025.

For operators with fully staffed engineering departments, complete housekeeping rosters, and full stewarding and F&B service teams on fixed payroll, these expenses can become difficult to justify during periods of lower occupancy.

“Market dynamics have pressed hotels to look in detail at the benefits of outsourcing. Many are looking to outsource entire departments, where we take responsibility for the outcome, allowing them to concentrate on their core business,” said Tamer Bishay, Director of Business Development at Farnek.

A key driver of outsourcing decisions is economies of scale. Large FM companies typically already have the operational infrastructure needed to support a workforce of hundreds, including staff accommodation, transport fleets, supervisory structures, large-scale training facilities, and an HR framework covering recruitment, visas, payroll, medical insurance, and leave planning.

When these capabilities are spread across multi-property portfolios, efficiencies deepen and savings become more consistent.

The most visible change is emerging in “hard services,” particularly technical maintenance. While engineering is often managed in-house through a resident chief engineer and engineering team, Farnek has found that demand for outsourced maintenance has surged.

It is increasingly being assessed not as a supplementary activity, but as a complete solution.

The practical advantages are significant. A specialist FM provider can run computer-aided facilities management (CAFM) platforms, IoT-based condition monitoring, energy-optimisation tools, and 24/7 helpdesks.

It can also supply certified multi-discipline technicians and handle statutory compliance requirements—elements that a single hotel may struggle to build independently or fund at scale.

Farnek’s technology division, HITEK AI, integrates its CAFMTEK, POWERTEK, CARBONTEK, and WASTEK platforms into a single operational view.

Its Hotel Optimiser uses this data to identify where a property’s maintenance, energy, and manpower can be run more efficiently.

“A hotel engineering team cannot match the technology, the data and the multi-site expertise that a specialist brings. When you combine hospitality knowledge with FM scale, the property gets a better-maintained asset at a lower and more predictable cost,” commented Bishay.

Housekeeping is following a similar trajectory.

Farnek is seeing more hotels explore outsourcing housekeeping as an adjustable service that can scale up or down with occupancy rather than being maintained at a fixed level year-round.

Technology is accelerating this shift.

Autonomous cleaning robots and IoT sensors support on-demand cleaning of public and back-of-house zones, with deployment driven by footfall and usage data instead of rigid timetables.

Farnek’s Hybrid Cleaning Unit combines robots with human operatives for detailed and guest-facing tasks.

The company plans to deploy more than 100 robotic units across the UAE this year alone, with live tracking through the CAFMTEK platform.

In guest rooms, HITEK AI’s Housekeeping+ application manages room status, task allocation, and quality checks in real time.

Training is reinforced through the Farnek Hospitality Academy, which prepares room attendants in a full hotel suite using more than 100 AI-verified checkpoints.

“The hotel gets the same standard at every occupancy level and only pays for the work that is actually needed,” explained Bishay.

This outsourcing logic is also extending to other hotel functions including stewarding and F&B service staff, concierge and guest services, kitchen staff, valet parking, security, and specialist cleaning.

In many cases, hotels are pursuing bundled contracts managed by one accountable partner.

“Outsourcing is not about abdicating responsibility; the hotel keeps ownership of their standards, it is about handing over execution to cost efficient and experienced FM professionals,” added Bishay.

Farnek also cites its track record across luxury UAE hospitality. Its experience includes providing FM services to brands and properties such as Atlantis, Address, Armani, Kempinski, Sofitel, JW Marriott, Grand Hyatt, Hilton, and Millennium.

The company secured more than AED80 million ($22 million) in hospitality contracts across 2024 and 2025 and currently deploys over 700 hospitality staff across client properties.