New hotel openings have impacted demand in the emirate
Dubai’s hospitality market saw steep declines in hotel rates last month as new supply and the shifting of Ramadan impacted demand.
In preliminary data for July, research firm STR said the emirate saw a 3.6 per cent dip in occupancy to 65.7 per cent as a 5.6 per cent increase in supply outweighed a 1.8 per cent increase in demand.
There was also an 11.5 per cent dip in average daily rate to Dhs471.25 and a 14.7 per cent dip in revenue per available room to Dhs309.76.
“Dubai’s hotel performance continues to be affected by supply expansion. Additionally, STR analysts note that July performance was affected by the Ramadan calendar shift, with the Eid al-Fitr holiday in late June this year versus early July last year,” STR said.
Last month, STR data showed worse Ramadan hotel performance across markets in the Gulf Cooperation Council than the previous year.
Dubai was one of the few markets not to see a significant RevPAR decline, while rates in Makkah dropped 8.8 per cent.
Lower oil prices, the strong dollar and new supply have forced GCC hoteliers to lower rates in recent years and the market has continued to face tough conditions in 2017.
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