Increasing numbers of hotel rooms entering the Dubai market are continuing to adversely impact average daily rates in the emirate.
A fall in ADR of 12.9% year-on-year in October to US $240 was recorded in a recent report by research firm STR Global.
Additionally, a 2.2% decline in occupancy to 79.9% resulted in revenue per available room falling to 14.8% to $192.
“A slowing in demand in Dubai can be attributed to the shift of Eid al-Adha from October 2014 to September 2015. Despite the decrease in occupancy, however, absolute occupancy remained above historic trends for the month. ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand,” said an STR Global representative said in a statement.
| Advertisement |
Demand for hotel rooms rose 3.4% in October, while room supply was up 5.7%.
The Dubai Corporation for Tourism and Commerce Marketing (DCTCM) forecasts 20,000 new hotel rooms by will be constructed by 2016.
Meanwhile, real estate consultancy JLL claimed they are expecting 28,000 more rooms to enter the market by 2018.
Dubai will welcome a number of hotel opening in the next two years, including the Crowne Plaza Dubai Marina; the Damac Towers by Paramount Hotels and Resorts and Swissotel Dubai in Jadaf.
Search our database of more than 2,700 industry companies
