Dubai hotel supply growth continues to outstrip demand: STR

Guest Contributor

Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly

STR’s preliminary March 2017 data for Dubai reveals hotel supply growth continues to outstrip demand.

Dubai's hotel landscape
Dubai’s hotel landscape

Supply surged 6% year on year, superseding demand growth of 4.6%.

Occupancies dropped 1.3% year on year but remained at a healthy 86.3%.

However, Average Daily Rate (ADR) slumped 9.8% to AED756.21 and Revenue per available room (RevPAR) plummeted 11% to AED652.61.

While ADR continues to be pressured by new supply entering the market, STR analysts note that occupancy reached a significant level for the month even with a slight year-over-year decrease. Demand was boosted by events like GFIA (Global Forum for Innovations in Agriculture, 20-21 March), ARABLAB The Expo 2017 (20-23 March) and DIHAD (Dubai International Humanitarian Aid & Development Conference & Exhibition, 21-23 March).

STR will release actual March 2017 results later this month. The February edition of STR’s Market Forecast is now available.
You might also like

Comments are closed.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time