Dubai hotels see rates slump as supply jumps in September

Latest STR data shows occupancy is down nearly 5% while RevPAR drops by more than 14%
By Staff writer
Wed 11 Oct 2017 02:20 PM

Significant supply growth continued to put pressure on the performance of hotels in Dubai during September, according to analysts STR.

Its preliminary September 2017 data for Dubai showed declines across all performance indicators as supply rose by 5.6 percent against a demand rise of just 0.6 percent.

Based on daily data from September, Dubai reported a 4.7 percent fall in occupancy to 76.6 percent while average daily rate (ADR) declined by 10.6 percent to AED497.67.

STR data also revealed that revenue per available room (RevPAR) slumped by 14.8 percent to AED381.20.

In addition to supply growth, STR analysts noted that a decline in events in the market compared with September 2016 might have weighed on Dubai's performance for the month.

For example last year, Dubai hosted the biennial International Congress of the International Society of Blood Transfusion.

Additionally, residents experienced a shorter vacation period this year, as the Eid Al Adha holiday shifted from September 11-18 in 2016 to August 31 to September 3 this year.

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Last Updated: Wed 11 Oct 2017 02:24 PM GST

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