Dubai hotel room rates soar 9%

03/05/2012 - Dubai Property News
Dubai hotel room rates soar 9%

Dubai’s hotel industry is positively thriving thanks to a continued surge in tourism. As visitors numbers continue to soar, hotels in the city have seen average room rates rise by nearly 9% to Dh1,000 per night during the first quarter of this year. Occupancy levels also shot up by 8.2% in the first three months to 86.6%, according to Q1 figures from STR Global. The combination of an increase in both these factors also served to push revenue per available room (RevPAR) up by 17.6% year on year.

The impressive figures mean Dubai is one of the top performing hotel markets in the region, alongside Saudi Arabia. While some areas like Doha in Qatar witnessed a drop in revenue due to an influx of new hotel rooms into the market, Dubai is proving it can still post highly positive results despite an increase in room inventory.

“This has been a dominant factor influencing performance in the past and will continue to do so as the region remains attractive for hotel owners and operators. Dubai and Abu Dhabi are interesting case studies to show how hotel markets can cope with balancing demand and supply,” Managing Director of STR Global, Elizabeth Randall commented.

In the first three months of 2012, Abu Dhabi’s hotel supply grew by 9.7% and Dubai’s rose by 11%, with the overall increase in supply serving to meet the continued boom in demand for hotel accommodation. The First Group looks forward to adding that the city’s burgeoning hotel market with its next prestigious development, TFG Dubai Marina Hotel – located in Dubai Marina; one of the city’s most coveted property hotspots.