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Thu 29 Aug 2019 11:41 AM

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Dubai hotel room rates fall, despite rise in occupancy

Occupancy rates rose 11.8% year-on-year

Dubai hotel room rates fall, despite rise in occupancy
In Abu Dhabi, room rates were found to be stable at AED 301, down 0.3 percent year-on-year. The capital’s occupancy rates rose 12.9 percent to 69.1 percent.

Average room rates in Dubai hotels fell to AED 486 in June 2019, compared to AED 544 during the same month in 2018, according to EY’s Hotel Benchmark Survey Report.

According to the report, the drop in room rates came even as occupancy went up 11.8 percent year-on-year to reach 66.7 percent in June.

Revenue per available room (RevPar) rose 8.4 percent to AED 324.

In Abu Dhabi, room rates were found to be stable at AED 301, down 0.3 percent year-on-year. The capital’s occupancy rates rose 12.9 percent to 69.1 percent.

In July, another report, from STR, found that hotels in Dubai suffered their lowest second quarter occupancy rates since the time of the global economic downturn a decade ago.

Occupancy in the emirate fell by 0.9 percent in Q2 to 67.1 percent, its lowest mark since 2009 as supply outgrew demand for the sixth consecutive quarter.

STR analysts also noted that the absolute average daily rate and revenue per available room were at their levels were the lowest since 2003.

They added that June was the strongest month of the quarter with a 30.5 percent increase in demand, which helped monthly performance levels.

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