Construction boom for Dubai hotels

01/02/2012 - Dubai Property News
Construction boom for Dubai hotels

Dubai’s hotel industry is positively thriving, with 13,349 hotel rooms in the construction pipeline. According to a new report by STR Global, that figure accounts for more than the combined totals of the next four largest hotel markets; Abu Dhabi, Riyadh, Cairo and Amman in Jordan. In a sign that the emirate’s hotel market is one of the region’s strongest performers, revenues during 2011 also increased despite an influx of new rooms onto the market.

“Overall RevPar (revenue per available room) has not been affected which proves Dubai's magnetic attraction as a tourist destination,” commented Yousef Wahbah, MENA head of Transaction Real Estate, Ernst & Young. Dubai was also the only tourist destination in the region to witness both a rise in occupancy and RevPar, of 4% and 4.5% respectively. In addition, occupancy levels surged to October 2007 levels, according to a report by TRI Hospitality Consulting, reaching an average of 87.3%.

2012 is already shaping up to be a highly exciting year for the Dubai hotel industry, especially with the promise of new hotel developments. Amongst the anticipated openings this year are The First Group’s next two prestigious hotel apartment projects in Tecom; Metro Central and Grand Central.