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Mon 10 Sep 2018 11:14 AM

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Video: How serious is the squeeze on Dubai hotel revenues?

Average daily rates (ADR) charged by Dubai hotels fell to their lowest mark in nearly 14 years in July, according to analysts STR.

Although STR’s preliminary July data for Dubai indicated performance consistent with strong growth in both supply and demand, ADR levels are poised to fall to their lowest since August 2004.

Based on daily data from July, Dubai's hospitality market reported a 6.3 percent rise in supply and a 7.2 percent increase in demand.

The figures also showed that occupancy rose by 0.9 percent to 66 percent in what is traditionally a quiet month due to the rise in summer temperatures to well over 40 degrees Celsius.

STR's data also said ADR fell by nearly 10 percent to AED423.63 while revenue per available room (RevPAR) fell 8.8 percent to AED279.81.

STR said in a statement: "Although growth in demand (room nights sold) was significant, performance levels remained low due to pressure from increased supply. The absolute ADR level would be the lowest for any month in the market since August 2004."

In this edition of Inside AB, Jeremy Lawrence and Sarakshi Rai, senior online editor at Hotelier Middle East, analyse the figures to see what the figures really tell us about the health of the hospitality sector.

(Source: Arabianbusiness.com YouTube channel)