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28 March 2024

Dubai hotel rates steady above Dh1K

Preliminary figures by STR Global showed 2.3-per cent decline in RevPAR to Dh845.6. (EB FILE)

Published
By Waheed Abbas

Dubai hotel rates remained above Dh1,000 a night in October despite increased supply last month, according to statistics published by STR Global.

The figures showed that the hotel occupancy rate in the emirate remained flat in October as supply outpaced demand during the month.

“Supply outpaced demand growth marginally for Dubai, resulting in flat occupancy growth and yet the city was able to maintain the same occupancy levels as the year before,” said Elizabeth Winkle, Managing Director of STR Global.

“From an ADR (average daily rate) perspective, Dubai hotels were able to maintain their rates above Dh1,000, as Dubai starts to move into its peak period,” she added.

It said the emirate saw supply increasing faster than demand. Hotel supply increased 7.3 per cent and demand 6.3 per cent. However, occupancy, average daily rate and revenue per available room saw decline last month.

Occupancy dropped 0.9 per cent to 81.7 per cent while average rate decreased 1.6-per cent to Dh1,034.57 per night.
The preliminary figures by STR Global showed 2.3-per cent decline in RevPAR to Dh845.6.

“Eid Al Adha took place in the earlier part of this month; however, as Eid also took place in October last year, we do not see much impact on the monthly numbers this year. This will change for 2015,” said STR Global’s Elizabeth Winkle.

Under-construction hotels rise in region

According to STR Global 10 new hotels went under contract in October 2014 compared to the previous month in the Middle East and Africa. The new properties will add 374 keys in region’s hotelier industry.

The region reported 646 hotels under contract totalling 151,579 rooms.

The under contract data includes projects in the in construction, final planning and planning stages but does not include projects in the unconfirmed stage.

Among the chain scale segments, the upper scale segment accounted for the largest portion of rooms under contract (36.4 per cent) in the region with 55,172 rooms.

Three other segments each accounted for more than 10 per cent of rooms under contract: the luxury segment (18.9 per cent with 28,628 rooms); the upscale segment (18.4 per cent with 27,833 rooms); and the unaffiliated segment (14.1 per cent with 21,327 rooms).