Dubai hotels see revenues dip during September

STR Global data shows drops in RevPAR, daily rates despite increase marginal rise in occupancy
Dubai hotels see revenues dip during September
(AFP/Getty Images)
By Andy Sambidge
Sat 18 Oct 2014 09:23 AM

Hotels in Dubai registered a marginal increase in occupancy during September compared to the same month last year but revenues fell, according to STR Global’s preliminary data.

The figures showed that Dubai hotels reported increases in supply (up 7.4 percent) and demand (up 7.8 percent) while occupancy rates rose by 0.3 percent to 76.3 percent.

The data also showed that hotels in the emirate posted a four percent decrease in average daily rate to AED671.87; and a 3.7 percent decline in RevPAR to AED512.83.

“Supply and demand for Dubai increases, while both high, kept pace with one another; therefore, the city was able to maintain the same occupancy levels as the year before," said Elizabeth Winkle, managing director of STR Global.

“As the temperature in the region begins to cool and business returns to the city, we start to see demand come back post-summer."

Dubai's hotels welcomed more than 5.8 million tourists in the first half of 2014 - the highest number of visitors ever achieved in the first six months of the year.

The statistics, released by Dubai's Department of Tourism and Commerce Marketing (DTCM) in August, showed increases across key indicators including hotel establishment guests, hotel and hotel apartment room revenues, F&B revenue and average length of stay.

Revenues for hoteliers and hotel apartment operators saw significant growth - with total first half revenues reaching AED12.74 billion ($3.18 billion), up by 10.9 percent on the same period last year.

Hotels and hotel apartments reported increases in room revenue (15.3 percent) as well as F&B & other revenue, which rose by 3.8 percent.

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