Dubai hotel RevPAR slips as room supply surges
STR Global preliminary results show 2.3% RevPAR decline
STR Global’s preliminary October data for Dubai indicates negative revenue-per-available-room performance.
Based on daily data from October, Dubai reported a 2.3% YoY decline in RevPAR to AED845.60 (US $230.20).
Negative results were also reported for occupancy, which witnessed a 0.9% decrease to 81.7%, and average daily rate which saw a 1.6% decrease to AED1034.57 ($281.65).
Supply increased by 7.3%, slightly exceeding demand, which was up 6.3%.
STR Global managing director Elizabeth Winkle commented: “Eid al-Adha took place in the earlier part of this month; however, as Eid also took place in October last year, we do not see much impact on the monthly numbers this year. This will change for 2015.
“Supply outpaced demand growth marginally for Dubai, resulting in flat occupancy growth and yet the city was able to maintain the same occupancy levels as the year before.
“From an ADR perspective, Dubai hotels were able to maintain their rates above AED1,000 ($272.23) as Dubai starts to move into its peak period”.
STR Global will release October 2014 results in two weeks.
The November edition of the STR Global Hotel Market Forecast will be available later this month.