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Dubai hotel occupancy rates up

dubai_rentalHotels in Dubai achieved an average occupancy of more than 87 percent during March, despite supply outpacing demand for the month, according to new data released by STR Global.

Its preliminary February data for Dubai showed that occupancy stood at 87.2 percent for the month, a 1.2 percent increase on the year-earlier period.

Based on the new data, the emirate reported increases in supply (up 7.4 percent) and demand (up 6.2 percent) last month.

The figures also indicated positive revenue per available room (RevPAR) growth, up 2.8 percent to AED950.68. STR Global’s data also showed a four percent increase in average daily rate to AED1,089.82.

 “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 percent, and the increase in rate managed to offset the negative occupancy trend, leading to an overall positive RevPAR performance for the month”.

Last month, it was announced that Dubai’s hotels welcomed more than 11 million guests in 2013 – an increase of just over one million on the previous year.

The Dubai Department of Tourism and Commerce Marketing (DTCM) data showed guest numbers across all hotel establishments (hotels and hotel apartments) between January and December reached 11.01 million compared to 9.96 million recorded in 2012.

 Of this, Dubai’s top 10 hotel guest source markets were Saudi Arabia, India, UK, USA, Russia, Kuwait, Germany, Oman, Iran and China.