Hotels in Dubai witnessed declines in occupancy and revenues in October despite a significant growth in demand (room nights sold), primarily due to the pressure from increased supply, said a report.
Dubai hotels recorded a 4.3 per cent drop in occupancy levels to 75.2 per cent, with the average daily rate falling 6.1 per cent to Dh685.41, causing revenue per available room (RevPAR) to decline 10.2 per cent to Dh515.64, said STR’s preliminary data for October.
Demand was up 3.1 per cent in October but supply surged 7.7 per cent for the month.
While the imbalance in supply and demand growth has led directly to lower occupancy levels, STR analysts attribute lower ADR in Dubai to hotels looking to drive market share through more attractive rates. Despite the negative year-over-year comparisons, occupancy was lifted during GITEX Technology Week (October 14-18).
STR, which will release full October results later this month, provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights.
TradeArabia News Service