RevPAR set to rally

Dubai hotels are likely to see an increase in revenue per available room (RevPAR) from the fourth quarter as tourism is boosted by events, according to industry experts.

Average daily rates (ADR) and RevPAR - two benchmarks for the hotel industry - are both expected to rise during December and will continue to increase during the fourth quarter, said a report by PKF The Consulting House.

“Hotels in Dubai can look forward with optimism to increasing occupancies and ADR through Q4 2009 and a positive outlook for 2010 and beyond,” said the report.

In September, STR Global, a hotel benchmarking expert, said RevPAR in Dubai dropped 33 percent during August compared to the same period last year.

Hotel occupancy in the city, however, remained significantly higher than other cities in the Middle East. Dubai occupancy remained at 64.1 percent compared to 38.2 in Muscat and 38.8 percent in Riyadh.

Despite the declines, The Consulting House said it expected RevPAR to break the $200 mark by the beginning of 2009.

“It is too early to predict whether RevPAR will break $200 by the year’s end but this is likely during Q1 boosted by the Dubai Shopping Festival and events such as Gulfood Exhibition and the Dubai International Arabian Horse Championship.”