Dubai: Average daily rates (ADR) for hotels in Dubai dropped 10.1 per cent year-on-year in the first quarter of this year to $234.88, according to a report released on Tuesday by research firm STR Global.
While ADR declined in the first three months of this year, it was the highest for the period among major international markets, STR Global said.
“Even with a 10.1 per cent drop in year-over-year comparisons, Dubai’s ADR for Q1 2016 was $234.88 [Dh862.71]. Only three other major markets finished the quarter with ADR levels above $200.00 in constant currency: Paris, France; New York, New York; and Singapore,” STR Global said in a statement.
Dubai’s performance in the first quarter was driven by events including the Dubai World Cup, the Dubai International Boat Show and Gulfood.
Philip Wooller, STR’s Middle East and Africa area director, said the first three months of the year, which is normally a slower period for markets like London, New York and Paris, are actually peak months for Dubai, as temperatures are more moderate, drawing in visitors from around the world.
“Dubai also has been one of the top five markets for year-end ADR levels every year since 2002,” he said.
In the Middle East and North Africa, hotel occupancy was down 3.3 per cent to 71.9 per cent year-on-year in the first quarter of this year, while ADR dropped 8.1 per cent to $188.55, according to another report by STR Global. This led to a 11.1 per cent decrease in revenue per available room (RevPAR — an industry measure of occupancy and rates) to $135.63.
