The month of November 2014 was quite for Dubai hotels who witnessed a dip in occupancies.
The industry reported weakening performance trends, as revenues per available room (RevPAR) declined by 6.6% to US$ 340.06. This recent report was discussed by HotStats MENA.
The decline in room revenues was also due to a softening of occupancies which retracted by 1.1 percentage points to 86.7%, but led largely by a decline in average room rates (ARR) of 5.5% to US$ 392.37.
“Hotels in Dubai have begun experiencing several demand and supply based issues that have weighed down on performance. The declining Rouble and higher rates in Dubai appears to have made many Russians reconsider their trip to Dubai, but also diverted some traffic to Sharm El Sheikh and Istanbul. Additionally, new supply entering the market has also made the sector more competitive,” said Peter Goddard, managing director of TRI Consulting.
The drop in room revenues also caused a decline in total revenues per available room (TRevPAR) by 2.3% to US$ 602.70. However, this was compensated in some part by an increase in food and beverage revenues that rose by 4.8%.