By Andy Sambidge
STR Global also sees 15% demand growth as int'l visitors set to top 8m in 2011
Hotels in Dubai are set to see revenue per available room grow by 8-9 percent in 2011, according to forecasts by STR Global.
Its forecast for the UAE city said it also anticipates demand growth of nearly 15 percent for the full year as international tourists number more than eight million.
STR Global said that new supply growth in 2012 is expected to reach 9.6 percent, causing both rate and occupancy to slow down.
Pipeline data from STR Global indicates that 13,000 rooms are under construction in the emirate with another 21,000 announced.
“The Dubai hotel market has managed to leverage its strategic location as a hub between continents and was valued as a safe destination during the Arab Spring," said Elizabeth Randall, managing director of STR Global in comments published by Hotel News Now.
“In addition, modern infrastructure, new hotel inventory and delayed openings have allowed the market to balance supply and demand. This is good news for hoteliers who can now build their occupancy and rate," she added.
Dubai hotels reported occupancy rates of 90 percent and above during the Eid break as the city benefited from the unrest that has roiled traditional tourist spots such as Egypt and Tunisia.
Starwood Hotels & Resorts two beach hotels, Le Méridien Mina Seyahi and The Westin, said occupancy was 95 percent for the two days over Eid while the Radisson Blu Hotel Dubai saw highs of over 90 percent.
Rotana said occupancy at its 13 hotels in the emirate topped 90 percent.
Demand growth in Dubai’s hotel industry was up 16.5 percent year-to-date in August compared to the previous year, according to STR Global.
Demand growth was led by the luxury/upper upscale segment (up 17.6 percent) while the midscale/economy segment experienced the strongest new supply growth (up 11.3 percent) year-to August compared to the previous year.
Branded economy and midscale hotels have been growing in the past few years as Dubai diversifies its hotel offering, which was until recently focused mainly on luxury sector.