Dubai’s hotel industry is facing uneven results going into Q4 2017, with occupancies averaging 75.6% representing a slight .3% growth as of September YTD, RevPAR declining 4.3% to AED 489 driven by a 4.6% drop in ADR to AED 647.
So revealed a market insight presentation by STR client relationships director Sarah Duignan at the Hotelier Express Summit 2017 held on November 22 at Grosvenor House, Dubai.
According to Duignan’s presentation, while other KPIs in Dubai reported generally positive figures for the same period, with revenue posting a 1.2% increase and demand showing growth at 6.1% . Supply also grew by 5.8%, nearly exceeding demand.
In terms of Dubai sub-markets, hotels in the Jumeirah beach and the Palm locations still reigned, with the highest occupancies at 70% and upwards and ADRs approaching AED 1600. The JBR & Marina area, although beating the occupancies of the Jumeirah beach and Palm hotels with a high 80%, posted much lower ADRs hovering around the AED 800 mark; meantime, hotels in Downtown and Business Bay posted similar rates to their JBR & Marina counterparts at occupancies just tipping over 60%.
In terms of the occupancy race, STR analysis showed that Dubai budget and mid-scale roared ahead of the overall hotel sector, with high compression nights (occupancies over 90%) for the budget category showing a 203% YOY increase in September 2017 and a 186% YOY increase for the mid-scale category during the same period. Overall the Dubai hotel sector reported a 23% YOY in high compression nights.
| Advertisement |
Search our database of more than 2,700 industry companies
