Time for the trend to be reversed? Dubai experiences lowest hotel occupancy rate in 18 years
Dubai hotels reported the lowest occupancy levels in July of any month for the last 18 years, said an industry expert, adding that preliminary data indicate negative revenue-per-available-room performance.
“As July is one of the hottest months within the region and coincides with the fastingmonth of Ramadan, the city had an overall negative trend, on top of growing supply,” added Elizabeth Winkle, managing director of STR Global, a provider of access to hotel research with regular and custom reports.
STR Global’s preliminary results for July indicate an 8.3 per cent increase in supply, while the demand has dropped by 4.5 per cent, said Winkle.
The initial results show an 11.8-percent decline in occupancy to 45.4 percent. However, the daily average rate is reported to have increased to Dh638.66 ($173.8), a five per cent rise.
Revenue-per-available-room (RevPAR) has seen a 7.4 per cent decline to Dh290.23, according to STR Global’s preliminary report.
STR Global will release July results in two weeks, added Winkle.