Preliminary June 2014 results for Dubai hotels from STR Global have revealed a 5.5% decline in occupancy to 75%, with a small increase in average daily rate (ADR) unable to offset revenue declines.
Positive results were seen for supply and demand, with both figures increasing. Supply grew 8.6%, while demand saw a 2.6% boost.
Meanwhile, there was a 1.4% increase in ADR to AED658.12, although the fall in occupancy still meant revenue per available room was down 4.2% to AED493.68.
Elizabeth Winkle, managing director of STR Global said: “Occupancy declined in June for the second month in a row, as demand growth slowed during one of the hottest months in the year and supply growth remained strong.
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“ADR continued to grow, posting the highest levels of any June since 2008. However, such an increase was not able to fully offset the negative occupancy performance”.
STR Global will release June 2014 results in two weeks. The May edition of the STR Global Hotel Market Forecast is now available.
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