Report: Dubai hotel performance in March 2020

Occupancy rates, RevPAR and ADR are all down compared to last year

Vida Emirates Hills hotel recently stopped taking bookings
Vida Emirates Hills hotel recently stopped taking bookings

Occupancy levels, average daily rate (ADR) and revenue per available room (RevPAR) have all dropped in the Dubai hotel market this month and last compared to the same point last year. According to data from STR, Dubai hotels have seen some of the sharpest declines across its metrics in years.

Declines started in the industry as the COVID-19 situation started to get worse. In February this year, occupancy dropped by 9.4% to 77.1% compared to last year. ADR and RevPAR dropped by 14.4% and 22.5% to AED567.63 and AED437.41 respectively.

Dubai hotels from March 1 to 8 this year recorded occupancy rates of 60.6%, marking a 28.2% decrease compared to March at the same time in 2019. Similarly ADR dropped by 20.4% to AED498.13 and RevPAR declined by 42.9% to AED301.68.

Hotels in Dubai and across the wider region have been attempting to mitigate lowering occupancy rates by providing limited-time discounts to residents. Meanwhile groups such as Emaar Hospitality have opted to temporarily halt bookings at three of its hotels.

Sister publication Arabian Business reported STR MD Robin Rossmann saying: “It is likely that this picture is going to look even worse in the coming weeks as the impact of government shut-downs on travel really starts to be felt.”

Despite however dire things look for the industry right now, Rossmann noted: “The thing to keep in the back of your mind and help maintain calm is that this is a pandemic driven by a virus which, once solved, I think we all hope, we’ll see a quick recovery.”

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