While Dubai hotels saw significant growth in both supply and demand in December, overall occupancy, revenue per available room (RevPAR) and average daily rate (ADR) fell notably over the month, according to STR’s preliminary data.
Based on daily data from December, Dubai reported the following in year-over-year comparisons:
- Supply: +8.6 percent
- Demand: +5.6 percent
- Occupancy: -2.7 percent to 79.2 percent
- ADR: -4.3 percent to AED758.80
- RevPAR: -6.9 percent to AED600.98
According to STR analysts, demand continues to grow, but an influx of new inventory is pressuring occupancy and ADR levels. When looking at individual days during the month, New Year’s Eve was the strongest, with occupancy reaching 97.1 percent (+1.9 percent year over year) and ADR at AED1,703.15 (-2 percent). The market closed the month with five consecutive nights of occupancy above 90 percent.
Dubai is looking to have 132,000 guestrooms by year's end and 164,000 by the time Expo 2020 gets underway.
London's Growth
November was a good month for London's hotel sector, with some strong year-over-year performance levels, and STR's numbers for December indicate the upward trend will continue for a while.
Based on daily data from the month, London reported the following in year-over-year comparisons:
- Supply: +2.3 percent
- Demand: +7.3 percent
- Occupancy: +5.0 percent to 81.9 percent
- ADR: +6.2 percent to £156.47
- RevPAR: +11.4 percent to £128.09
STR analysts attribute the performance to the holiday season. Daily data shows New Year’s Eve was the strongest day of the month with RevPAR at £219.39 (+17.8 percent).