Dubai hotel occupancy up 2.1% in August

Average daily rate (ADR) falls 5.7 to Dh682.21

21/09/2014 01:06 AST

Hotels in Dubai saw occupancy grow by 2.1 per cent to 75.1 per cent in August compared to the same period in 2013, according to preliminary data by research firm STR Global.

“Occupancy performance is back to normal trading conditions after the fasting month of Ramadan in July,” stated Elizabeth Winkle, managing director of STR Global.

In July, Dubai’s hotel occupancy dropped 12 per cent to 45.4 per cent due to slow demand in the hot month and rising hotel room supply in the city.

Supply rose 8.6 per cent as of August, while demand grew by 10.9 per cent.

There are 628 hotels under contract, with 147,454 rooms, in the Middle East and Africa, according to the August 2014 STR Global Construction Pipeline Report. Jeddah, Saudi Arabia, posted the largest increase in existing supply (115.7 per cent) if all 7,396 rooms under contract open, as per the report.

Meanwhile, average daily rate (ADR) in August fell 5.7 per cent to Dh682.21, and as a result, revenue per available room (RevPAR — a performance benchmark) declined 3.7 per cent to Dh512.25. In July, ADR was up five per cent to Dh638.7, while RevPAR dropped 7.4 per cent to Dh290.23.

“The overall decline in ADR, however, is strongly related to the three days of Eid celebrations shifting months, where Dubai hotels experience a spike in hotel performance,” Winkle said.


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