Dubai hotel rates slide in March

Dubai hotels saw significant declines in both average daily rate and revenue per available room (RevPAR) last month, according to preliminary data from research firm STR.

The company said despite the decrease there was notable growth in both supply and demand, which increased 6 per cent and 4.6 per cent respectively.

Dubai’s average daily rate fell fell 9.8 per cent year-no-year to Dhs756.21 ($206), while RevPAR declined 11 per cent to Dhs652.61 ($178).

However, occupancy remained high at 86.3 per cent, down just 1.3 per cent.

“While ADR continues to be pressured by new supply entering the market, STR analysts note that occupancy reached a significant level for the month even with a slight year-over-year decrease,” STR said.

The company noted that demand was boosted by events like the Global Forum for Innovations in Agriculture, ARABLAB The Expo 2017 and Dubai International Humanitarian Aid & Development Conference & Exhibition.

The decreasing rates comes as a significant number of new projects are expected to enter the market in the coming years.

STR data for February shows 19,578 rooms across 64 projects in the construction, final planning and planning stages in Dubai alone.