May was another strong month for hotels in Dubai, with demand from the MICE segment resulting in increases in average rates.
Despite a 0.9 percentage point year-on-year drop in occupancy levels during the month to 82.2%, average rates increased by 4.6% to US$301.09, according to the Hotstats, which surveys full service hotels.
This boosted RevPAR by 3.5% to US$247.61 and, with growth in F&B and conferencing revenues, there was a 4.1% rise in TRevPAR to US$464.14. Profitability grew 5.8% reaching US$208.15, the highest of the five markets surveyed by Hotstats.
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“Hoteliers yielded the highest growth in average rates from the MICE segment, where ARR increased 18.4% on the back of strong demand,” said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
“The International Design Exhibition, Beauty World Middle East, Arabian Travel Market and Dubai Airport Show collectively drew 70,000 attendees and allowed hoteliers to command a premium within the MICE segment.”
He added that strong demand from leisure visitors continued to provide a solid demand base for four and five star hotels, with a 11.3% increase in ARR within the segment driving average rate growth across the market.
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