Dubai hotel occupancy dips despite demand growth

Hotels in Dubai posted declines in occupancy and revenues in December despite tourism inflows during the holiday season, primarily due to an influx of new inventory pressuring occupancy and average daily rate (ADR) levels, market analysts revealed.

According to STR’s preliminary data for the month, occupancy dipped 2.7 per cent to 79.2 per cent and ADR was down 4.3 per cent to Dh758.80 ($206.5), causing a 6.9 per cent drop in revenue per available room to Dh600.98 ($163.6).

When looking at individual days during the month, New Year’s Eve was the strongest with occupancy reaching 97.1 per cent (up 1.9 per cent year over year) and ADR at Dh1,703.15/$463.6 (down 2.0 per cent). The market closed the month with five consecutive nights of occupancy above 90 per cent.

Demand and supply were, as usual, on the upward trend, with room nights sold up 5.6 per cent and hotel inventory up 8.6 per cent. - TradeArabia News Service