Dubai’s hotel market continues to outperform the rest of the region, with average occupancy levels hitting 75% in 2010. That’s according to a report by Ernst & Young's Mena real estate and hospitality advisory services. Dubai’s high last year reached 87% in November, surpassing neighbouring emirate Abu Dhabi at 80%. 2011 also began on a high note, with occupancy levels in some hotels reaching 100% during the month of February – one of which was The First Group’s Dubai Sports City development, The Diamond Hotel Apartments. “These are healthy numbers when you compare to elsewhere around the world and take into consideration that hotels usually break even at 60 per cent occupancy levels,” the Ernst & Young report commented.
The average room rate (ARR) of Dh900 also pushed RevPar to Dh738, marking an increase of 4.9% on 2010. In March, Dubai hotels performed even better, with RevPar rates jumping 7.9%. According to statistics from STR Global, the region as a whole is set to release 52,000 rooms in the hotel market over the next two years. Dubai will be leading this growth with over 30,000 rooms due to come online. The First Group will be adding to that new supply, with the upcoming release of two new hotel apartment projects in Tecom: First Central in July, and Grand Central at the end of the summer.