By Staff writer
STR Global’s preliminary October data for Dubai reveals drops in occupancy, ADR and RevPAR
Dubai hotels are cutting average daily rates (ADR) in a bid to stimulate traditional levels of high demand as occupancy and rates fell again in October.
STR Global’s preliminary October data for Dubai revealed increases in supply (up 5.7 percent) and demand (up 3.4 percent).
Based on daily data from October, Dubai reported decreases in all performance indicators when compared with a strong October in 2014.
Hotels in the emirate posted a 2.2 percent decrease in occupancy to 79.9 percent and a 12.9 percent decrease in average daily rate to AED883.06.
Hotels in Dubai also reported a 14.8 percent decrease in revenue per available room to AED705.44, according to STR Global.
It said in a statement: "A slowing in demand in Dubai can be attributed to the shift of Eid al-Adha from October 2014 to September 2015. Despite the decrease in occupancy, however, absolute occupancy remained above historic trends for the month.
"ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand."