By Staff writer
Latest STR data shows occupancy jumps 17.6% while RevPAR rises 7.5%, bucking recent trend of declines
Dubai hotels witnessed increases in occupancy and revenue per available room (RevPAR) in July, boosted by Eid al-Fitr festivities, according to new data from industry analysts STR.
Hotels in the emirate saw occupancy jump by 17.6 percent to 67.5 percent while RevPAR rose by 7.5 percent to AED365.08. However average daily rates (ADR) dropped 8.6 percent to AED540.60.
STR said in a statement that the market’s demand was up 24.6 percent year-over-year with a lift from Eid al-Fitr festivities.
At the submarket level, the highest absolute occupancy levels were reported in Palm Jumeirah (74.9 percent) and the Deira and Airport area (72 percent), STR said.
It added that ADR in the city continues to be affected by new supply which rose by 5.9 percent in July.
Elsewhere in the Gulf, Kuwait hotels recorded increases across the three key performance metrics with occupancy up 5.1 percent to 38 percent, ADR rising 0.8 percent to KD66.36 and RevPAR up 5.9 percent to KD25.21. Performance was primarily driven by a 25.9 percent increase in occupancy in the Kuwait area submarket but in the Kuwait City submarket, occupancy fell 3.8 percent.
In Qatar, hotels reported decreases in each of the three metrics. Occupancy in the country fell 6.6 percent to 53.3 percent while ADR was down 0.8 percent to QR491.68 and RevPAR dropped 7.3 percent to QR261.93. According to STR analysts, the month’s performance was mostly affected by an 8 percent year-over-year increase in supply.
Regionally, hotels in the Middle East reported mixed results in July. Compared to July 2015, the Middle East recorded a 4.8 percent rise in occupancy to 58 percent. However, ADR was down 15.9 percent to $161.82 and RevPAR fell 11.9 percent to $93.88.