Font Size

- Aa +

Sat 16 Feb 2019 02:06 AM

Font Size

- Aa +

Dubai hotel rates squeezed as supply expands ahead of Expo 2020

STR's preliminary January data for Dubai indicated performance was affected by a continued influx of new room inventory

Dubai hotel rates squeezed as supply expands ahead of Expo 2020
STR figures showed that hotel supply jumped by 9.3 percent in January while demand rose by just 3.9 percent.

Expanding hotel supply in Dubai ahead of the city hosting the Expo 2020 mega event impacted on occupancy and room rates in January, according to analysts STR.

STR’s preliminary January data for Dubai indicated performance affected by a continued influx of new room inventory.

Based on daily data from January, Dubai reported decreases in occupancy, average daily rates (ADR) and revenue per available room (RevPAR).

STR figures showed that supply jumped by 9.3 percent in January while demand rose by just 3.9 percent.

Occupancy fell 4.9 percent to 82.2 percent despite rates eclipsing 90 percent for each of the first three nights of the year.
   
STR said ADR dropped by 11.4 percent to AED714.01 compared to the same month last year while RevPAR slumped by 15.8 percent to AED586.79.

STR analysts noted that year-over-year declines are to be expected with significant supply growth ahead of Expo 2020. Despite this, demand - measured by room nights sold - grew for the fourth consecutive month.

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.