Dubai: Hotels in Dubai saw occupancy and average daily rates (ADR) dip again in March, according to a statement from research firm, STR Global.
Occupancy was down 2.2 per cent to touch 85.7 per cent last month, while ADR dropped 6 per cent to reach Dh978.69 year-on-year. This was due to a number of factors, including growth in hotel room supply, a weaker euro and rouble, as well as the recovery of cheaper destinations like Egypt and Lebanon.
“Dubai was always going to find it difficult to achieve the same performance levels of 2014, with the first quarter of last year being one of the strongest on record. This factor, combined with a few others, such as new supply entering the market, declines from some of the traditionally strong feeder markets such as Russia and Ukraine, and the progress of competing markets like Egypt and Lebanon, has all combined to create additional challenges for Dubai,” Elizabeth Winkle, managing director of STR Global, said in the statement.
The decrease in occupancy and ADR has pushed revenue per available room (an industry benchmark for performance) down by 8 per cent to Dh838.69.
Demand grew along with supply, according to STR Global. It was up 4.5 per cent last month, while supply grew by 6.9 per cent.
A total of 7,799 hotel and hotel apartment rooms were added to the market last year, increasing the room stock to 92,333, according to the Dubai Corporation for Tourism and Commerce Marketing (DCTCM).
