Average daily rates drop -5.2% YoY, says Cavendish Maxwell report
Occupancy levels in Dubai’s hospitality sector reached 75.7% in the first eight months of 2023, rising 7% year-on-year (YoY), Cavendish Maxwell said in a new report.
The emirate’s hotel sector reported a 72.8% occupancy rate in 2022, placing it among the world’s highest and matching 2019’s pre-pandemic levels of 74.6%, the report said, citing STR data.
However, average daily rates (ADRs) saw an annual decline, with an overall drop of -5.2% in the year to August. The trend remains consistent across various positionings of establishments.
In 2022, Dubai experienced a significant uptick in ADRs, rising 17.1% YoY to 693 UAE dirhams.
Dubai International Airport (DXB) registered a 127% surge in annual passenger traffic to 66.1 million in 2022, beating its own forecast of 64.3 million. This year, DXB has received 41.6 million passengers in the first half of 2023. Therefore, the airport has revised upwards its estimate from 78 million to 85 million.
According to the consultancy’s estimates, Dubai will see the addition of 40 new hotel establishments in 2023, taking the total number to 853.
The emirate has already seen the opening of four hotels and two hotel apartments with total keys of 1,992.
The report said Dubai will see an addition of 11 establishments in 2024 and another 11 in 2025.
In 2022, 7,797 rooms were added, representing 42% of the projected keys.
Cavendish Maxwell said Russia now holds the second-largest spot, while Western European visitors have also surged.
The report added that Germany saw a 52% increase, followed by a 12% boost from the United Kingdom and a solid 10% rise from Italy.
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