May 2016 saw hotels in Dubai recording strong average occupancy of 86%, while revenue per average room (RevPAR) dropped, a new report by EY stated.
RevPAR declined by 7%, from US $200 (AED 734) in May 2015 to $186 in May 2016.
“While occupancy rates remained high in both Dubai and Abu Dhabi, their hospitality markets witnessed a decrease in RevPAR mainly due to the drop in average daily rates in both cities,” said EY MENA head of Transaction Real Estate Yousef Wahbah.
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The report found that the overall Middle East hotel performance was mixed for the month.
Jeddah’s market recorded an 11% increase in average occupancy with RevPAR up 33%.
Madina witnessed a decrease in RevPAR of 26.5%, while Doha saw occupancy fall from 72% to 66%, with RevPAR falling by 23.2%.
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