By Sarah Townsend
ADR declines by 10.3%, RevPAR by 7.1% year-on-year in August, says STR
Dubai hotels revenue declined by up to 10 percent year-on-year last month despite a rise in occupancy, new figures reveal.
Average daily rate (ADR) dropped by 10.2 percent to AED515.22 ($140.2) over 2016, according to preliminary August data from hotels consultancy STR.
Meanwhile, revenue per available room (RevPAR) dropped by 7.1 percent to AED392.03 ($106.7).
However, STR recorded a 3.4 percent increase in occupancy to 76.1 percent and increases in supply and demand, by 5.5 percent and 9.2 percent respectively, it said.
Citing figures from tourism marketing agency Visit Dubai, STR said the market has seen year-to-date increases in visitors from each of its top four source markets: India (9 percent), Saudi Arabia (5 percent), Oman (+22 percent) and the UK (4 percent).
STR analysts noted that Dubai hotels ADR has continued to decrease as supply growth remains robust.
The full set of figures for August 2016 are to be released later this month, STR said.
That's because they are ridiculously overpriced. We wanted to take a staycation over summer and just could not justify 1200AED a night. You then pay municipality fee, room service fee, 40AED for a coffee.......the list goes on. Hotels need to make better deals for residents and make families in the UAE want to stay at their hotels for weekend getaways. When we first arrived 10 years ago we were able to do one weekend a month, now we just can't justify it and only go once a year at most. I would rather holiday in another country in the region that doesn't overcharge for everything.