Oversupply causing Dubai hotel rates to fall

Sarah Jacotine, March 7th, 2016

Average hotel room rates in Dubai continued to fall in January due to growing hotel room supply, according to a new report from HotStats.

Average room rates (ARR) in Dubai fell 9.3% year-on-year in January 2016, compared to a 6.7% drop in 2015, and occupancy declined to 86.7% from 87% in January 2015, the research firm revealed.

As a result, revenue per available room (RevPAR) fell by 9.7% for the month to US $271.10 (AED 994.94).