Dubai: Demand for hotels and resorts in Dubai soared to an all-time high last month on the back of high visitor arrivals, but earnings and occupancies remained subdued compared to last year.
According to the latest data released on Wednesday, the number of rooms sold to guests was at a record high for the month of November, thanks to a surge in visitors who want to take advantage of the emirate’s winter offerings and lovely weather.
The preliminary data shared by hotel industry research firm STR on Wednesday showed that last month’s hotel demand went up year-over-year by 2.7 per cent. “Demand (room nights sold) reached an all-time high for a November in Dubai,” STR said in a statement.
The occupancy level across hospitality properties in the emirate was also well above the November average, at 87 per cent.
November was a busy month for hoteliers in Dubai, especially with the hosting of the Dubai Airshow, which took place in November 12 to 16. “Occupancy also eclipsed 90 per cent for four consecutive nights around the Dubai Airshow,” STR said in a statement.
However, despite the high demand, average room costs dropped by 1.1 per cent to Dh754.11 per night, while occupancy also fell by 2.7 per cent to 87 per cent, when compared to last year.
The year-over-year decline in average daily room rate and occupancy has been due to high growth in the supply of hotel properties.
As of the second quarter of the year, Dubai saw 2,500 hotel rooms completed, putting the total supply to 80,400.
Among the newly completed properties, Viceroy The Palm brought in 477 rooms, while Dusit D2 Kenz and St. Regis Polo Resort added 240 rooms and 181 rooms, respectively.
“Completions so far this year have all been in the upscale and luxury segments, confirming the city’s heavy dependence on the upper end of the market,” JLL, which compiled the figures, said in a report.
By 2018, more than 13,000 rooms are likely to add to the existing supply and nearly 20,000 more are expected in 2019.
