Dubai: Hotels in Dubai saw average daily rates (ADR) fall again last month, pressured by an increasing number of hotel rooms coming online in the market, according to the latest report by research firm STR Global.
ADR was down 12.9 per cent year-on-year in October to Dh883. This, coupled with a 2.2 decline in occupancy to 79.9 per cent resulted in revenue per available room (RevPAR — a measure of rates and occupancy) to fall 14.8 per cent to Dh705.44.
“A slowing in demand in Dubai can be attributed to the shift of Eid al-Adha from October 2014 to September 2015. Despite the decrease in occupancy, however, absolute occupancy remained above historic trends for the month. ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand,” STR Global said in a statement.
Hotel room supply was up 5.7 per cent, while demand rose 3.4 per cent in October.
Dubai expects to see 20,000 new hotel rooms by 2016, according to the Dubai Corporation for Tourism and Commerce Marketing (DCTCM).
Meanwhile, real estate consultancy JLL stated that 28,000 more rooms are likely to enter the market by 2018.
A number of hotels are set to open in the emirate in the next two years, such as the Crowne Plaza Dubai Marina; the Damac Towers by Paramount Hotels and Resorts and Swissotel Dubai in Jadaf.
