Dubai hotels enjoy record occupancy in 2013

Hotels in Dubai recorded 80-percent occupancy in 2013 as the hospitality market absorbed the influx of new hotel supply, according to the latest report by global consultancy Ernst and Young.

“The GCC region recorded positive growth, but markets in the Levant and North African region saw a decline in performance compared to 2012,” said Yousef Wahbah, Head of Transaction Real Estate for the Middle East and North Africa at EY, in an emailed statement.

Last year saw the addition of 2,780 hotel rooms within the 4- and 5-star hotel segment to Dubai’s hotel supply, such as the Conrad Hotel on Shaikh Zayed Road and The Oberoi hotel in Business Bay.

While occupancy remained stable in 2013 compared to 2012, average room rate grew by 6.4 percent to $278, leading revenue per available room to reach $223, representing an increase of 5.9 percent.