Dubai RevPAR levels plummet in February
STR Global preliminary results reports 7.4% RevPAR decline in hotels across the emirate
STR Global’s preliminary February 2015 data for Dubai indicates low RevPAR performance.
Based on daily data from February, Dubai reported a 7.4% decline in revenue per available room (RevPAR) to AED852.00 (US $231.97).
According to Elizabeth Winkle managing director of STR Global, the RevPAR drop was due to an imbalance between supply and demand, with the data showing a 6.1% increase in supply and a 4.1% growth in demand.
Winkle commented: “RevPAR performance declined in February, despite growing demand, as increasing supply continued to put pressure on rates”.
“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 the growing supply, occupancy levels in excess of 80% do not suggest a sharp fall in rate, though”.
The preliminary data increases in supply for February showed a 5.6% decrease in average daily rate (ADR) to AED983.48 ($267.76).
The data also reveals that occupancy decreased by 1.9% to 86.6% for Dubai.
Despite the negative results for February, STR Global still predicts a 1.4% increase in RevPAR for 2015.
STR Global will release February 2015 results in two weeks. The February edition of the STR Global Hotel Market Forecast is now available.
The January STR Global results similarly reported negative results, with RevPAR decreasing 6.4% to AED916.17 (US $249.42).
STR Global provides a single source of global hotel data covering daily and monthly performance data, segmentation data, forecasts, annual profitability, pipeline and census information.