Dubai hotel occupancy rises as room rates become affordable

Demand for hotel rooms in Dubai outpaced supply after months of lagging behind, thanks to a number of Mice events taking place in the emirate last month.

According to STR Global’s data for the month of May, hotel room demand increased 8 per cent while supply expanded 5.6 per cent in Dubai.

The global hotel data provider said Dubai’s 80-per cent occupancy level for May was helped by increased business travel from the Arabian Hotel Investment Conference and the International Design Exhibition.

According to STR Global analysts, slight uncertainty exists amongst investors in Dubai due to low global oil prices. However, Dubai has established a successful flow of tourism on which to rely during such times. New prospects on the horizon, such as the Dubai Design District, also should bring a new mix of visitors to the city.

Occupancy rates registered a 2.3 per cent increase, reaching 80 per cent during the month while the average daily rate and revenue per available room registered decline.

Average daily room rate in Dubai hotel decreased 8.5-per cent to Dh709.10 while revenue per available room dropped 6.4 per cent to Dh567.50.

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