STR data show Dubai occupancy down for two consecutive months

STR Global released its preliminary June data for Dubai's hotel indistry, showing a 5.5-percent increase in supply and a 2.6-increase in demand, as well as a 1.4-percent increase in average daily rate. However, the emirate posted a 4.2-percent decrease in revenue per available room, down to $134.41.

This is the second month in a row Dubai recorded a decline in occupancy, said Elizabeth Winkle, managing director of STR Global. 

“Demand growth slowed during one of the hottest months in the year and supply growth remained strong”, Winkle said. “ADR continued to grow, posting the highest levels of any June since 2008. However, such an increase was not able to fully offset the negative occupancy performance”.

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According to The National, thousands of Dubai hotel rooms are expected to go to market this year, including a 430-unit Pullman property in Jumeirah Lakes Towers, the 304-room Coral International in Sports City and the 765-room Ghaya Grand Hotel and Apartments. 

Laurent Voivenel, the chief executive of the hotel operator Hospitality Management Holdings, told The National that hotel rates in the company rose while occupancy dipped. HMH runs the Coral Dubai Deira Hotel, Coral Dubai Al Barsha Al Khoory Hotel and Apartments, Corp Dubai Al Wasl Al Khoory Hotel, and EWA Dubai Deira Hotel.

Dubai first posted declining occupancy numbers earlier in the year, but at the start of June it was forecasted that slowed occupancy growth in the emirate could lead the way for rising rates, which could recoup the losses. Only time will tell.

Subbply is not a concern for Dubai, which has 71 hotels under planning or construction, accounting for 22,000 additional rooms, according to a Deloitte-STR report released in May.