The WPJ
Vacation Real Estate News
Dubai Hotel Demand Outpaced by New Supply
While demand for Dubai's hotel rooms has been increasing in 2014, and positive revenue-per-available-room has grown, new supply has been outpacing it, that's according to STR Global's preliminary March data for Dubai.
"While demand growth was strong, it did not keep pace with new supply, resulting in negative occupancy performance for the market", said Elizabeth Winkle, managing director of STR Global. "ADR grew by another 4.0 percent, and the increase in rate managed to offset the negative occupancy trend, leading to an overall positive RevPAR performance for the month".
Early data from STR Global's Dubai hotel report for March include:
- Increase in supply (+7.4 percent) and demand (+6.2 percent);
- 1.2-percent decrease in occupancy to 87.2 percent;
- 4.0-percent increase in average daily rate to AED1,089.82; and
- 2.8-percent rise in RevPAR to AED950.68.
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