7,400 new hotel rooms open in Dubai despite ongoing pandemic, reveals Colliers

8,100 hotel keys entered Dubai between Q2 2019 and Q2 2020

A total of 8,100 hospitality keys entered the UAE market between Q2 2019 and Q2 2020 despite the freezing effect COVID-19 has had on the industry.

Revealed by Colliers International in its MENA Hotels Quarterly Review, most of the openings were in the first half of Q1 2020, before the pandemic snowballed into what it is today. Out of the 8,100, 92 percent of the new supply is in Dubai, adding 7,452 rooms to the emirate.

Despite the increase in supply across the Arab country, the UAE’s hospitality sector still struggled this year. Occupancy rates have dropped 36 percent in Dubai compared to the same point last year, with neighbouring Abu Dhabi also seeing a drop of 13 percent. Sharjah, Ras Al Khaimah and Fujairah saw similar results, with a 29 percent, 28 percent and 11 percent drop respectively.

With the hotels being closed in the first month and a half of Q2, the markets have experienced a decline of 20 percent to 50 percent in RevPAR. Emirate by emirate, ADR fell 14 percent in Dubai, 20 percent in Abu Dhabi, 6 percent in Sharjah, 12 percent in Ras Al Khaimah and 14 percent in Fujairah, according to Colliers.

However, performance during Q4, the peak hospitality season in the UAE, will be the best indicator on the recovery of international tourist demand in 2020, said Colliers.

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