Hotel room rates in Dubai decreased marginally as new rooms hit the market last month.
With a decrease of 1.6 per cent year-on-year, the average daily room rate was at Dh1,034.57 across luxury to economy segments, according to monthly data from STR Global.
The dip led to a decline of 2.3 per cent in the revenue per available room to Dh845.60.
More rooms continue to enter the market. There was a 7.3 per cent increase in supply last month, outstripping demand at 6.3 per cent, STR Global said.
Apart from hotel rooms, hotel apartments continued to stream into the market. Last month, Damac Properties opened a hotel residence tower in Downtown Dubai with 211 apartments with one to three bedrooms. Operating under Damac Maison and Naia by Damac, the company expects to operate 11,000 serviced hotel apartments in 2018.
The occupancy rate in Dubai recorded a 0.9 per cent decrease to 81.7 per cent last month.
With rising numbers of tourists, international and local hotel companies are adding assets to the emirate. This month, US-based Starwood Hotels and Resorts is set to open a 474-room Sheraton Grand Hotel on Sheikh Zayed Road that will also include 180 serviced apartments. The company already has 14 properties in Dubai.
“With the creation of new clusters, Dubai is expanding and continuously creating new areas for growth,” said Guido De Wilde, the group’s senior vice president and regional director for the Middle East.
Last month, InterContinental Hotels Group (IHG) tied up with Dubai-based Abjar Hotels International to manage a 450-room Holiday Inn and a 250-room Staybridge Suites, both near Dubai World Central.
IHG expects to open nine hotels in the next five years in the UAE, including InterContinental Dubai Marina by next year and Crowne Plaza Dubai Marina by 2016.
ssahoo@thenational.ae
Follow The National's Business section on Twitter
