Forecast shows Dubai occupancy to stabilize in 2014

Earlier this year, Dubai posted declining occupancy numbers, which is bad news for a city placed second on the list of the most expensive for hotel stays the world over. However, new data shows that occupancy growth for the city may taper off but remain stable throughout the rest of the year.

Zawya reported that occupancy in the emirate grew to approximately 80.5 percent for the fourth consecutive year and the highest in eight years. This rise resulted in increased average daily rates (ADR) from hoteliers, up 5.6 percent between 2010 and 2013. 

Harmen de Jong, partner at property consultancy Knight Frank, told Gulf News that occupancy growth has slowed in 2014, but this presents hotel operators with an opportunity to capture growth in other areas, such as rate.

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In his Abu Dhabi and Dubai Hospitality report, Jong forecasts hotel operators attracting frequent individual travelers and reducing the number of rooms allocated of low-yield segments, including airlines, tour operators and guests seeking long stays.

Additionally, the report cites properties that are popular with families, such as Kempinski and the Sheraton at Mall of the Emirates, The Address at Dubai Marina Mall and Ibn Battuta Gate Hotel by Movenpick, remain very popular, growing from 76 percent occupancy in 2012 to 80 percent in 2013.

The emirate is also poised to gain approximately 1,000 midscale-and-lower properties over the next five years in an attempt to attract as many travelers as possible.