STR says average daily rates are set to rise marginally for first time since April 2017
Dubai hotels are set to register a small increase in average daily rates (ADR) for March, the first in almost a year, according to new figures released by analysts STR.
STR’s preliminary March 2018 data for Dubai indicated strong growth in both supply and demand.
Based on daily data from March, Dubai reported a 5.4 percent rise in supply against a 4.7 percent increase in demand.
Occupancy rose by 0.6 percent to 85.7 percent while ADR increased by 0.5 percent to AED752.49, the STR figures showed while revenue per available room (RevPAR) fell marginally by 0.1 percent to AED644.97.
STR said the increase in ADR would be the first for the market since April 2017 and only the second overall since July 2014.
STR analysts noted the rise in ADR could be due to the shift in Saudi school holidays, which occurred March 10-20.
Overall performance remains consistent as demand (room nights sold) grows, but not as fast as supply, they added.