By Andy Sambidge
New report also says occupancy rate for first five months of year up 4% to 83%
Hotel occupancy rates in Dubai reached 83 percent in the first five months of 2012, up four percent compared to the same period last year, Jones Lang LaSalle has said in a new report.
It said the first five months of 2012 have upheld the recovery trend in the Dubai market, with the city receiving around 2.6 million tourists in the first quarter of the year.
The report said average daily rates showed an increase of about seven percent, boosted by beach hotels where improvements exceeded 10 percent in January to May.
As a result of higher occupancies and ADRs, RevPAR levels showed an impressive 13 percent growth, reaching $212 in the five-month period.
Jones Lang LaSalle said the first half of 2012 saw the addition of about 850 branded hotel rooms in the city, taking the current supply to more than 54,000 rooms.
The bulk of the major openings are scheduled in the second half of the year, mostly leaning towards the end of the year after Ramadan, the report said.
Approximately 4,500 additional guest rooms are expected to be completed in 2012 with major projects including JW Marriott Marquis (Business Bay), Al Khor Rayhaan (Al Ghurair City), Fairmont The Palm and Conrad Sheikh Zayed Road.
"The positive upswing in tourism volumes in Dubai has raised confidence levels and following a slowdown witnessed in the last couple of years, there has been an increase in the number of announced projects in the city," the report added.
Additionally, several major established hotels are undertaking renovation programs to refresh their products in order to match the new supply and cater to increased demand (e.g. Pullman Deira City Centre Hotel).
Separately, STR Global said the Middle East/Africa hotel development pipeline comprised 506 hotels totalling 129,077 rooms in June.
Dubai reported the largest number of rooms in the In Construction phase with 11,307 rooms.
Four other markets ended the month with more than 1,000 rooms under construction - Abu Dhabi (5,658 rooms); Riyadh (4,474 rooms); Cairo (2,209 rooms); and Amman (1,719 rooms).