Analysts STR say room rates are being competitively priced in Dubai ahead of Expo 2020 to cope with rising supply
Dubai hoteliers are reducing room rates ahead of Expo 2020 to help stimulate demand, according to analysts STR.
STR’s preliminary August data for Dubai indicated significant growth in both supply and demand, with room rates being competitively priced to cope with accelerating supply.
Based on daily data from August, Dubai hoteliers reported a 7.6 percent rise in supply against a 7.4 percent increase in demand.
The figures also showed a slight 0.2 percent decline in occupancy for the month at 68.5 percent while average daily rate (ADR) fell by 12.5 percent to AED389.11.
STR also said that revenue per available room (RevPAR) dropped by 12.6 percent to AED266.57.
STR analysts noted that the move to reduce room rates to keep up with increasing room supply has been a common trend among the majority of key markets in the Middle East since the drop in oil prices in 2014.