Dubai hotels are set to register a small increase in average daily rates (ADR) for March, the first in almost a year, according to new figures released by analysts STR.
STR’s preliminary March 2018 data for Dubai indicated strong growth in both supply and demand.
Based on daily data from March, Dubai reported a 5.4% rise in supply against a 4.7% increase in demand.
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Occupancy declined by 0.6% to 85.7% while ADR increased by 0.5% to AED752.49 (US$204.90), the STR figures showed while revenue per available room (RevPAR) fell marginally by 0.1% to AED644.97 ($175.62).
STR said the increase in ADR would be the first for the market since April 2017 and only the second overall since July 2014. STR analysts noted the rise in ADR could be due to the shift in Saudi school holidays, which occurred BETWEEN March 10-20.
Overall performance remains consistent as demand (room nights sold) grows, but not as fast as supply, the statement added.