Dubai sees 86% occupancy in May, but RevPAR falls

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.

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%.