Supply growth has led to increases in occupancy and average daily rates when compared to November 2016
Demand for hotel rooms reached an all-time high in November, with above average occupancy rates, according to analysts STR.
STR’s preliminary November for data in Dubai shows a 5.6 percent increase in demand year-on-year, as well as a 2.7 percent increase in demand.
Occupancy, however, 2.7 percent, but remained above the November average of 83.6 percent. Notably, occupancy eclipsed 90 percent on four consecutive days during the Dubai Airshow.
The STR statistics also show that the average daily rate for Dubai hotel rooms dropped 1.1 percent to AED 754.11 ($205), while revenue per available room (RevPAR) fell 3.8 percent to AED 655.84 ($178).
STR analysts cite supply growth as the reason for the year-on-year increases in occupancy and average daily rates.
In November, STR released a report which noted that the supply of hotel rooms in Dubai will significant increase, as the emirate currently has 29,226 hotel rooms in 95 projects in various stages of planning – the largest construction pipeline in the Middle East.