UAE hospitality sector marked by unprecedented 'hotel rush'
The UAE is among the top five countries in the world for new hotel openings over the past five years. (Image credit: Shutterstock)
Click here to add Abu Dhabi as an alert
Disable alert for Abu Dhabi,
Click here to add AMMAN as an alert
Disable alert for AMMAN,
Click here to add Beirut as an alert
Disable alert for Beirut,
Click here to add Cairo as an alert
Disable alert for Cairo,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Elizabeth Winkle as an alert
Disable alert for Elizabeth Winkle,
Click here to add Manama as an alert
Disable alert for Manama,
Click here to add Muscat as an alert
Disable alert for Muscat,
Click here to add STR Global as an alert
Disable alert for STR Global
Hotels in Dubai recorded the biggest increase in average daily rate, or ADR, in the Middle East/Africa region in November to underscore the emirate’s position as the fastest growing hospitality hub of the region according to an article in Gulf News.
Dubai’s ADR growth of 9.9 per cent to $290.68 far outpaced the regional average growth rate. Dubai, which was recently elected to host the prestigious World Expo 2020, also boasts the region’s highest revenue per available room (RevPAR) at $254.18. The Mena region reported mixed performance results during November 2013, according to data compiled by STR Global.
The region reported a 1.7 per cent decrease in occupancy to 64.6 per cent, a 6.8-per cent increase in average daily rate to $180.88 and a 4.9 per cent increase in RevPAR to $116.78.
“In the Middle East and Africa region, demand is outpacing supply on a rolling 12-month basis, achieving 3.7 per cent and 2.7 per cent growth, respectively. RevPAR has been driven by rate, with a 3.4 per cent growth in US dollar terms. The region’s performance is mostly driven by Middle Eastern markets of Abu Dhabi, Dubai, Manama and Muscat, which all posted double-digit RevPAR growth year-to-date November 2013 in local currency terms,” said Elizabeth Winkle, STR Global’s managing director.
Qatar recorded the largest ADR drop at 18 per cent to $181.23 as five markets achieved RevPAR increases of more than 10 per cent. These include Amman (+19.3 per cent to $105.97); Beirut (+19.2 per cent to $64.36); Manama, Bahrain (+15.2 per cent to $100.67); Dubai (+12.7 per cent to $254.18); and Abu Dhabi (+10.4 per cent to $171.7).
Cairo fell 43.3 per cent in RevPAR to $33.74, posting the largest decrease in that metric. Beirut reported the largest occupancy increase, rising 22.3 per cent to 43.2 per cent. Amman followed with a 14.2 per cent increase to 67.8 per cent. Cairo fell 39.3 per cent in occupancy to 33 per cent, posting the largest decrease in that metric.
The UAE, which is already among the top five countries in the world for new hotel openings over the past five years, saw positive growth throughout the first 11 months of 2013. The country has the longest pipeline of rooms under construction with an additional 32,107 rooms in the offing while the Middle East/Africa hotel development pipeline comprises 483 hotels totaling 117,450 rooms.
Dubai hotels posted significant growth in revenues during the first three quarters with total revenues surging by 17.1 per cent to Dh15.33 billion. Total guest nights also recorded similarly impressive rises, up 13.7 per cent to 30,874,916 from 27,163,974 in the first nine months of 2012.
EC Harris, the global consultancy, estimates that there were 23,500 five star rooms in Dubai in 2012. However, this number has grown significantly throughout the last 18 months as operators launch new properties to meet growing demand and cash in on lucrative room rates. The Construction Pipeline Report released by STR Global predicts that Dubai’s hotel room capacity will grow 28.6 per cent in 2013 with 17,409 rooms in the pipeline. Dubai has also been named a top 10 global destination for business, leisure and shopping tourists in a research exercise by Genesis Consulting ME.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?
- Dubai's hospitality sector: the new gold rush?
- Deyaar Garners Unprecedented Interest Ahead of Scheduled Sales Event for ‘The Atria’ in Business Bay
- $10 billion rush for more GCC hospitals
- An impending employment rush? Qatar Business Optimism Index hits 2009 high
- Global Investment House – Kuwait – UAE Real Estate Sector- For the past five years, the GCC region has enjoyed an unprecedented property boom.