Dubai hotel occupancy almost 100% on NYE
STR's preliminary December data for Dubai indicates 97.1% occupancy on New Year's Eve, 2% up on previous year
Dubai hotels saw a rise in demand in December but an influx of new supply continued to put pressure on occupancy and room rates, according to latest figures by STR.
Analysts STR’s preliminary December data for Dubai indicated performance consistent with significant growth in both supply and demand.
Based on daily data from December, Dubai reported an 8.6 percent rise in supply against demand growth of 5.6 percent.
STR said occupancy fell by 2.7 percent to 79.2 percent while average daily rates (ADR) decreased by 4.3 percent to AED758.80.
The figures also showed that revenue per available room (RevPAR) dropped by 6.9 percent to AED600.98 in December.
STR analysts noted that the story remains the same for Dubai. "Demand (room nights sold) continues to grow, but an influx of new inventory is pressuring occupancy and ADR levels," they said.
When looking at individual days during the month, New Year’s Eve was the strongest with occupancy reaching 97.1 percent - nearly 2 percent up on the same day in 2017 - and ADR at AED1,703.15 (down 2 percent).
Dubai's hospitality market closed the month with five consecutive nights of occupancy above 90 percent, STR added
Hotelier reported that, based on STR data, the GCC is expecting an additional 58,000 keys entering into the market in 2019 with Dubai, as well as Makkah and Riyadh, facing the highest increases in supply.