Dubai hotels saw occupancy dip 0.2% to 68.5% in August, according to preliminary STR data. ADR dropped 12.5% to 389.11 Emirati dirhams ($105.95) and RevPAR fell 12.6% to 266.57 dirhams ($72.59).
STR’s preliminary August 2019 data for Dubai, United Arab Emirates, indicates significant growth in both supply and demand.
Based on daily data from August, Dubai reported the following in year-over-year comparisons:
• Supply: +7.6%
• Demand: +7.4%
• Occupancy: -0.2% to 68.5%
• Average daily rate (ADR): -12.5% to AED389.11
• Revenue per available room (RevPAR): -12.6% to AED266.57
STR analysts note that as the market prepares to host EXPO 2020 (20 October 2020 through 10 April 2021), hotel rooms are being competitively priced in an effort to stimulate demand and keep up with accelerating room supply. This has been a common trend among the majority of key markets in the Middle East since the drop in oil prices in 2014.
STR will release full August results later this month.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.