Published on : Thursday, August 10, 2017
According to the statistics published STR, hotel industry research firm, prices of rooms in emirate have lessened more this summer, with an average cost of Dh471.25 per night in last month, which shows a down by 11.5 percent in comparison to the same time 2016.
The drop is because the room inventory is growing at a much faster rate than the number of guests. “Dubai’s hotel performance continues to be affected by supply expansion,” STR said in a statement.
In July 2017, demand increased by 1.8 percent. Room demand went up by 5.6 per cent, leaving ample empty accommodations with declining revenues.
All over Dubai, the hotel occupancy rates remained at an average of 65.7 per cent, declining by 3.6 percent in comparison to 2016. As a result, the revenue per available room went down by 14.7 percent to Dh309.76
STR analysts nevertheless highlighted the fact that July performance was equally influenced due to Ramadan calendar shift, with the Eid al-Fitr vacation scheduling on late June of this year against early July in 2016.
“However, Dubai did not experience as severe downturn as several other Middle Eastern markets during this year’s Ramadan period,” STR said.