Font Size

- Aa +

Sun 16 Feb 2014 01:55 PM

Font Size

- Aa +

Dubai hotel rates hit six-year high in January

Latest STR Global data shows double digit rise in average daily rate while RevPAR also increases

Dubai hotel rates hit six-year high in January
The iconic Burj al-Arab hotel. (AFP/Getty Images)

Average daily rates in Dubai hotels grew to their highest January levels for six years last month, according to latest data.

STR Global’s preliminary January data for Dubai alsoindicated positive growth in revenue per available room (RevPAR).

However, occupancy levels fell marginally (-0.4 percent) to 87.5 percent as increases in supply (up 5.9 percent) exceeded demand (up 5.5 percent).

Hotels in the emirate reported an 11.7 percent increase in average daily rate to AED1,177.74 and an 11.2 percent rise in RevPAR to AED1,031.10.

“The growth in demand for January was not able to absorb the additional supply coming into this market, resulting in a slight decline in occupancy”, said Elizabeth Winkle, managing director of STR Global.

“ADR, meanwhile, achieved the highest levels of any January since 2008 and remains the main driver for the double-digit growth in RevPAR”.

Dubai is set to charge all tourists a small Tourism Dirham charge from March 31 to help fund the international promotion of the emirate.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of the Executive Council, last month issued a resolution to bring in the charge, which will vary between AED7 to AED20 ($5.44) per room per night depending on the type of accommodation.

The Tourism Dirham will be applied to guests staying in all holiday accommodation including hotels, hotel apartments, guesthouses and holiday homes.

Last month, the latest HotStats survey by TRI Hospitality Consulting Middle East showed hotels in Dubai reported the highest profit levels in the region in 2013 for the fourth consecutive year.

During December, Dubai continued to record strong performance levels, reflecting the growth experienced throughout the year, the survey said.

For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.