A report by real estate consultancy CBRE revealed that Dubai's average hotel occupancy rate dropped around 3.5% during the first half of 2016 versus the same period last year.
The firm's Q2 2016 Dubai MarketView also revealed that the average daily room rates (ADR) dropped by around 10%, resulting in a 13.1% dip in revenue per available room (RevPAR), reported sister title Arabian Business.
CBRE said that despite the declining performance, Dubai remains one of the best performing markets in the GCC, with various cities in Saudi Arabia, Qatar and Oman experiencing far more severe declines, as a result of lower prices, the US dollar strength and the negative impacts of a subdued economy and lower corporate demand.
| Advertisement |
CBRE Middle East head of research & consulting Mat Green said in a statement: "Hotel operators in Dubai have made widespread cuts to their ADRs throughout Q2, as they strive to remain competitive during a period affected by lower spending capacities and seasonal demand drops.
"Although the Dubai hotel market performance has softened, looking ahead, it will see increases in tourist numbers, boosted by lower temperatures and city events such as Dubai Summer Surprises and Cityscape Global."
Search our database of more than 2,700 industry companies
