Dubai hotels ready for robust holiday season

Dubai’s hotels expect a rise in room rates next year even as budget-conscious tourists head to affordable neighbouring emirates this festive season.
Hawthorn Suites in Jumeirah Beach Residence expects room rates next year to go up by 8 per cent as it focuses more on corporate travellers. Courtesy R Hotels
Hawthorn Suites in Jumeirah Beach Residence expects room rates next year to go up by 8 per cent as it focuses more on corporate travellers. Courtesy R Hotels

Dubai’s hotels expect a rise in room rates next year even as budget-conscious tourists head to affordable neighbouring emirates this festive season.

The year-old Hawthorn Suites in Jumeirah Beach Residence expects room rates next year to go up by 8 per cent as it focuses more on corporate travellers. It expects room rates to average Dh650 next year.

The rates for this year’s festive season between December 24 and January 1 are between Dh800 and Dh1,500, in line with the same period last year.

“We are expecting full occupancy during this period, especially on New Year’s Eve,” said Wael El Behi, the general manager of Hawthorn Suites by Wyndham JBR.

“Ras Al Khaimah is picking up because of high rates in Dubai during these dates. However, Dubai will retain the high demand and occupancy because of the events planned across the emirate.”

In Downtown Dubai, popular for festive fireworks, the Ramada has sold out “with some [rooms] even double our normal average daily rates”, said Samir Arora, the hotel’s general manager.

Most of the hotel’s visitors are from the Arabian Gulf region. Price-conscious travellers are opting for more economical destinations, but “there is enough demand for all hotels in Dubai”, according to Mr Arora.

“For the past couple of years, this demand has spilt over to Sharjah and other emirates.”

While Ramada expects prices and occupancy levels to hold steady in the next two quarters, the supply of hotel rooms will affect the rates, he said.

“[But] with oil prices going down and airlines forecasting to do well next year, travel will comparatively be cheaper,” Mr Arora said. “This will hugely impact demand within the city, so my view of the situation is that the city will do well in spite of this new supply of rooms.”

The Address Hotels and Resorts also expects to record high occupancy during the festive weekend, led by international tourist arrivals for the Downtown Dubai New Year’s Eve Gala.

The hotel’s rooms start at Dh1,800 per night and can go up to Dh9,499 on Christmas Eve. It is sold out for New Year’s Eve.

Dubai hotels last December reported a 1.7 per cent increase in occupancy levels to 80 per cent and a 7.7 per cent rise in average prices to Dh1,063.32, according to STR Global.

ssahoo@thenational.ae

Follow The National’s Business section on Twitter

Published: December 21, 2014 04:00 AM

SHARE

Editor's Picks
NEWSLETTERS
Sign up to:

* Please select one

Most Read