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Wed 10 Dec 2014 01:24 PM

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Dubai hotels witness falls in occupancy, revenues in November

Latest STR Global data also forecasts positive outlook for 2015 with marginal rise expected in RevPAR

Dubai hotels witness falls in occupancy, revenues in November
(AFP/Getty Images)

Hotels in Dubai witnessed declines in occupancy and revenues in November although growth in demand remained healthy during the month, according to STR Global.

STR Global’s preliminary November data for Dubai indicated increases in supply (7.3 percent) and demand (4.6 percent.

The figures also showed a 2.5 percent decrease in occupancy to 85.5 percent while average daily rates fell by 6.9 percent to AED977.84.

STR Global also said hotels in Dubai witnessed a 9.2 percent decline in revenue per available room (RevPAR) to AED835.72 last month.

However, the figures also forecast that Dubai hotels will see a 0.9 percent increase in RevPAR during 2015.

Elizabeth Winkle, managing director of STR Global, said in a statement: “Growth in demand remained healthy for the month, achieving occupancy levels in excess of 85 percent despite the continuous strong supply growth.

"The notable decline in ADR, however, was impacted by a challenging comparable against the biennial Dubai Airshow in November 2013 as well as the annual Dubai Rugby Sevens moving into December 2014."

She added: “Our 2015 RevPAR outlook for Dubai remains positive as occupancy levels are expected to stay around 77 percent, which suggests continued pricing power."

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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Emela Simpson 5 years ago

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