Dubai set to post 3% RevPAR increase in 2014

STR Global has reported that its preliminary May data for Dubai indicates a positive revenue-per-available-room performance and is predicting a 3% RevPAR increase in 2014.

Based on daily data from May, Dubai reported an increase in supply of +8.8%, along with an increase in demand of +6.1% across the emirate.

Average daily rates saw a 4.3% increase to AED809.88 and RevPAR increased by 1.7 percentage points to AED632.23.

The one less positive indicator was that occupancy was down 2.5%  to 78.1%, although this has been explained by Elizabeth Winke, managing director of STR Global, as a result of the +8.8% boost in supply.

Winkle commented: “Demand remained strong for Dubai. However, supply growth continued to pick up for the fifth month in a row, leading to a decline in occupancy performance for May. Continued ADR growth pushed the metric above 2008 levels. Further rate growth is expected to drive positive RevPAR performance throughout 2014”.

STR Global will release May 2014 results in two weeks. The May edition of the STR Global Hotel Market Forecast is now available.