Dubai hotel occupancy rate tops 87% in March

STR Global data shows hotels see 1.2% year-on-year improvement

Research, Data, Occupancy, Occupancy data, Str global

Hotels in Dubai achieved an average occupancy of more than 87% during March, despite supply outpacing demand for the month, according to new data released by STR Global.

Its preliminary February data for Dubai showed that occupancy stood at 87.2% for the month, a 1.2% increase on the same period in 2013.

Based on the new data, the emirate reported increases in supply (up 7.4%) and demand (up 6.2%) last month.

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The figures indicated positive revenue per available room (RevPAR) growth, up 2.8% to AED950.68 (US $258.83). STR Global's data also showed a 4% increase in average daily rate to AED1,089.82 (US $296.71).

“While demand growth was strong, it did not keep pace with new supply, resulting in negative occupancy performance for the market”, said Elizabeth Winkle, managing director of STR Global.

“ADR grew by another 4%, and the increase in rate managed to offset the negative occupancy trend, leading to an overall positive RevPAR performance for the month”.

Last month, it was announced that Dubai’s hotels welcomed more than 11 million guests in 2013 – an increase of just over one million on the previous year.

The Dubai Department of Tourism and Commerce Marketing data showed guest numbers across all hotel establishments (hotels and hotel apartments) between January and December reached 11.01 million, compared to 9.96 million recorded in 2012.

Of this, Dubai’s top 10 hotel guest source markets were Saudi Arabia, India, UK, USA, Russia, Kuwait, Germany, Oman, Iran and China.

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