2011 marks year of growth for Dubai hotels

29/12/2011 - Dubai Property News
2011 marks year of growth for Dubai hotels

2011 has been a year of positive growth for Dubai’s vibrant hotel industry, according to the latest industry figures. With international visitor numbers to Dubai set to rise beyond 8 million by the end of the year, STR Global reports that revenue per available room, or RevPAR, will record an overall average rise of 8-9%. During the month of October, Dubai’s hotels posted a 13.5% increase in RevPAR to $194.05, second only to Jeddah in the Middle East and Africa region (MENA).

An increase in tourism numbers will also boost the demand for hotel rooms by nearly 15% - hugely positive news for investors in Dubai’s hotel industry. According to STR Global, the majority of hotels in Dubai recorded occupancy levels as high as 85% from the month of October, with this momentum set to continue well into the New Year thanks to factors such as the Dubai International Shopping Festival.

Dubai has also emerged as the world’s 18th destination in terms of international visitor spending, with figures estimated to be around $7.8 billion in 2011. In addition, as a whole the UAE recorded the largest number of hotel rooms, with a total of 40,176 either under construction or in the active pipeline. The nearest contender in the MENA region was Saudi Arabia with 5,531 rooms. 2012 looks set to be another year of growth for Dubai’s hotel sector, with new developments such as The First Group’s Tecom hotel apartments, Metro Central and Grand Central, set to add to the city’s diverse hotel supply.