Dubai hotel room rates rise on

Hotel occupancy rates in Dubai fell to 18-year low in July 2014 due to the holy month of Ramadan, according to STR Global figures released on Monday.

The preliminary data showed that the occupancy rate in the emirate’s hotels dropped 11.8 per cent to 45.4 per cent during the month but average daily room rate rose 5 per cent to Dh638.66 during the month.

“Dubai reported the lowest occupancy levels of any month for the last 18 years, when STR Global began tracking hotel performance for the market”, said Elizabeth Winkle, Managing Director of STR Global.

“As July is one of the hottest months within the region and coincides with the fasting month of Ramadan, the city had an overall negative trend, on top of growing supply,” she said.

Hotel room supply growth outpaced demand during the month of July as supply increased 8.3 per cent while demand fell 4.5 per cent.

STR said revenues per average room plunged 7.4 per cent Dh290.23 during July 2014.

The General Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai said about 600,000 visitors flocked to the emirate through various entry points during Eid Al Fitr which was marked at the end of last month.

Major General Mohammed Al Marri, Director General of GDRFA-Dubai, said that the department welcomed 597,652 visitors from 197 different countries. Visitors from GCC countries reached 166,945 (28 per cent of the total number of guests).

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