By Staff writer
STR Global preliminary data indicates 26% rise in occupancy, 22% increase in RevPAR compared to July 2014
Dubai hotels are set to post double-digit increases in both occupancy and revenue per available room (RevPAR) in July, according to preliminary data published by STR Global.
Based on daily data from July, the emirate's hotels will report significant year-over-year performance increases although year-earlier figures were impacted by the fall of Ramadan.
Dubai reported increases in supply (up 4.8 percent) and demand (up 32.1 percent), with occupancy set to soar by 26.1 percent to 57.6 percent.
STR Global also reported a 22.4 percent increase in RevPAR to AED353.43 but average daily rates fell by 2.9 percent to AED614.12.
STR Global analysts noted that Dubai’s occupancy level for July remained below 50 percent until the conclusion of Ramadan in the middle of the month. For the remaining days in the month, occupancy in the market eclipsed 70 percent.
Year-to-date hotel performance across the Middle East in particular is showing heavy impacts of Ramadan, according to data from STR Global.
Sarah Duignan, director of account management for STR Global, said: “The Middle East is kind of a shut shop when Ramadan is taking place, and you see the impact of Ramadan in deep dips (in average daily rate).
In terms of supply and demand in the Middle East, Duignan said supply is “much more muted than we’ve seen in previous years".
With what Duignan called “reasonable demand” affecting the Middle East, most supply is concentrated in the upper-upscale and luxury segments, which in turn has helped the country push performance in the midscale and economy segments.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.