Dubai: Rates at hotels and resorts across Dubai continue to fall, as more rooms come on stream and put pressure on hoteliers.
Initial data released by hotel industry research firm STR showed that room prices in the emirate have gotten even more affordable in the summer, costing an average Dh471.25 per night in July, down by 11.5 per cent compared to the same period last year.
The decline is mainly due to the room inventory growing faster than guest numbers. “Dubai’s hotel performance continues to be affected by supply expansion,” STR said in a statement.
While demand increased by 1.8 per cent in July, room supply went up by 5.6 per cent, leaving plenty of accommodations empty and revenues falling.
Hotel occupancy rates across Dubai averaged at 65.7 per cent, falling by 3.6 per cent compared to a year earlier. As a result, the revenue per available room dropped by 14.7 per cent to Dh309.76.
STR analysts, however, pointed out that July performance was also affected by the Ramadan calendar shift, with the Eid al-Fitr holiday falling in late June this year versus early July last year.
“However, Dubai did not experience as severe downturn as several other Middle Eastern markets during this year’s Ramadan period,” STR said.