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Sun 14 Sep 2014 01:43 PM

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Eid holiday hits Dubai hotel rates during August

New STR Global data shows occupancy rate increase but RevPAR and ADR both fall last month

Eid holiday hits Dubai hotel rates during August
(AFP/Getty Images)

Dubai hotels saw occupancy rates jump back to normal in August following a month affected by Ramadan, according to new data released by STR Global.

The company’s preliminary August data for Dubai also indicated negative revenue per available room (RevPAR) and average daily rate (ADR) performance, caused by the Eid holiday.

Dubai reported increases in supply (up 8.6 percent) and demand (up 10.9 percent) during the month, the statistics showed while occupancy rose 2.1 percent to 75.1 percent compared to the same month last year.

However, hotels in the emirate also saw a 5.7 percent decrease in ADR to AED682.21; and a 3.7 percent decline in RevPAR to AED512.25.

“Occupancy performance is back to normal trading conditions after the fasting month of Ramadan in July”, said Elizabeth Winkle, managing director of STR Global.

“The overall decline in ADR, however, is strongly related to the three days Eid celebrations shifting months, where Dubai hotels experience a spike in hotel performance."

Last month, it was announced that 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), 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.

In addition to the increase in hotel guest numbers, since the end of June 2013, Dubai said it has added more than 7,000 hotel rooms to its inventory, with the total now standing at 88,680 across 634 establishments.

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