Dubai revPAR set to fall up to 28% by year-end

Revenue per available room performance (revPAR) at hotels in Dubai is predicted to be down by at least 25 percent for year-end 2009 compared to 2008.

This was the best case scenario, according to the latest Hotel Market Forecast from hospitality industry analysts STR Global.

The worst case performance scenario forecast a drop in revPAR of 28 percent, said the report.

Earlier this month, industry experts said Dubai hotels were likely to see an increase in revPAR from the fourth quarter onwards as tourism is set to be boosted by events.

Average daily rates (ADR) and revPAR - two benchmarks for the hotel industry - are both expected to rise during December and will continue to increase during the fourth quarter, said a report by PKF The Consulting House.

“Hotels in Dubai can look forward with optimism to increasing occupancies and ADR through Q4 2009 and a positive outlook for 2010 and beyond,” said the report.

Dubai is the first market in the Middle East to be included in the Hotel Market Forecast, which provides 18 months of forecast data aimed at reducing uncertainty and improving the decision-making process of hotel owners and operators.

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