Dubai’s hotel room demand increased 9.2% year on year in August, racing ahead of supply, which grew 5.5% compared to August 2015.
That’s according to STR’s preliminary August 2016 data for the emirate, which overall indicates mixed performance results.
Based on daily data from August, Dubai also reported a 3.4% y-o-y increase in occupancy to 76.1%; a 10.2% decrease in average daily rate (ADR) to AED515.22; and a 7.1% decrease in revenue per available room (RevPAR) to AED392.03.
According to July figures from Visit Dubai, the market has seen year-to-date increases in visitors from each of its top four source markets: India (+9%), Saudi Arabia (+5%), Oman (+22%) and the United Kingdom (+4%).
STR analysts note that ADR has continued to decrease in the market as supply growth remains robust.
STR will release actual August 2016 results later this month. The August edition of STR’s Market Forecast is now available.