STR’s preliminary March 2017 data for Dubai reveals hotel supply growth continues to outstrip demand.
Supply surged 6% year on year, superseding demand growth of 4.6%.
Occupancies dropped 1.3% year on year but remained at a healthy 86.3%.
However, Average Daily Rate (ADR) slumped 9.8% to AED756.21 and Revenue per available room (RevPAR) plummeted 11% to AED652.61.
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. Demand was boosted by events like GFIA (Global Forum for Innovations in Agriculture, 20-21 March), ARABLAB The Expo 2017 (20-23 March) and DIHAD (Dubai International Humanitarian Aid & Development Conference & Exhibition, 21-23 March).
STR will release actual March 2017 results later this month. The February edition of STR’s Market Forecast is now available.