Dubai’s hospitality performance dips

Dubai hotel occupancies face a dip
Dubai hotel occupancies face a dip

The recent STR Global’s preliminary February 2015 data for Dubai indicated a low RevPAR performance.

As per the report, there was an increase in supply with 6.1% and demand with 4.1%. However, this did not match occupancy figures which witnessed a 1.9% decline to 86.6%, a decrease in the average daily rate of 5.6% to AED983.48 and decrease in revenue per available room of 7.4% to AED852.00. However, there was a 1.4% increase in RevPAR is expected in 2015.

Elizabeth Winkle, managing director of STR Global said: “The outlook for 2015 remains positive, however, as Q3 and Q4 are expected to overcome a weaker start of the year. Downside risks remain that market ADR will be soft in response to growing supply, occupancy levels in excess of 80% do not suggest a sharp fall in rate, though.”


The STR Global: MEA pipeline for February stated that there are 640 hotels totalling 149,799 rooms under contract in the Middle East/Africa region. The UAE reported most rooms under construction with 21,893 rooms in 76 hotels. Three other countries reported more than 4,000 rooms under construction: Saudi Arabia (16,945 rooms in 57 hotels); Qatar (6,492 rooms in 24 hotels); and Egypt (4,004 rooms in 14 hotels).

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