Dubai: Hotels in Dubai saw their occupancy rates rise marginally in December even as new supply entered the market, and are poised for positive growth in the coming months.
“With the peak season having started, the region is setting up for a successful incline in hotel occupancy,” said Yousuf Wahbeh, head of transaction real estate for the region at Ernst and Young (EY), a global consulting firm, in an emailed statement. “We expect this to continue throughout the upcoming months especially in the UAE, with the onset of the Dubai Shopping Festival.”
Occupancy grew by 1.7 per cent to 80 per cent in December compared to the same time a year ago, according to preliminary data by STR Global, a hotel research firm.
Average daily rate (ADR) was up 7.7 per cent to Dh1,063.32, resulting in revenue per available room (RevPAR) increasing by 9.5 per cent to Dh850.50, the data showed.
“December is in line with the previous months and closed another fabulous year for Dubai, achieving the highest RevPAR levels since 2009 for this month,” Elizabeth Winkle, managing director of STR Global, said in a statement
Supply influx
Around 2,950 branded hotel rooms have been added to Dubai’s hotel supply in 2013, according to Wahbeh. Some of the hotels that opened last year include Sofitel Dubai The Palm, the Oberoi, Conrad Dubai and Novotel Al Barsha.
“Dubai’s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well,” Wahbeh said.
In November meanwhile, occupancy in Dubai reached 85.9 per cent, representing a 5.1 per cent drop compared to the same period a year ago, while remaining stable year-to-date (January-November 2013), according to the latest report by EY.
However, average room rates increased by 5.6 per cent to Dh1,223 compared to November 2012, while RevPAR declined 0.3 per cent to Dh 1,051.
In Abu Dhabi, occupancy was up 1 per cent to 84 per cent during November, the report by EY showed. Average room rates stood at Dh919, representing a 2.3 per cent drop, and RevPAR declined 0.7 per cent to Dh 778.
The capital added 1,700 new branded hotel rooms last year, Wahbeh said.
