STR data shows a 7.7% rise in supply against 3.1% growth in demand in Dubai's hospitality market
Hotels in Dubai cut room rates in October in an effort to drive market share as continued supply growth hit performance levels, according to analysts.
STR's preliminary October data for Dubai indicated a 7.7 percent rise in supply against 3.1 percent growth in demand.
Based on daily data from October, Dubai hotels reported a 4.3 percent dip in occupancy to 75.2 percent.
STR also reports that average daily rate (ADR) fell by 6.1 percent to AED685.41 in October compared to the same month last year while revenue per available room (RevPAR) dropped by 10.2 percent to AED515.64.
STR analysts said in a statment: "While a growth imbalance in supply and demand has led directly to lower occupancy levels, STR analysts attribute lower ADR in Dubai to hotels looking to drive market share through more attractive rates.
"Despite the negative year-over-year comparisons, occupancy was lifted during GITEX Technology Week."For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.