Dubai hotels’ demand, supply increase, ADR, RevPAR drop in August
Occupancy rates registered a drop as well
Supply increased by 7.6% and demand rose by 7.4% when compared to the same period last year.
Occupancy rates dropped by 0.2% to 68.5%, while ADR decreased by 12.5% to AED389.11(US$105.95) and RevPAR dropped by 12.6% to AED 266.57($72.58), when compared to August 2018.
STR analysts said that as Dubai readies itself to host Expo 2020, “hotel rooms are being competitively priced in an effort to stimulate demand and keep up with accelerating room supply”.
This, according to officials, “has been a common trend among the majority of key markets in the Middle East since the drop in oil prices in 2014”.