- increases in supply (+5.6 percent) and demand (+8.0 percent);
- a 2.3-percent increase in occupancy to 80.0 percent;
- an 8.5-percent decrease in average daily rate to AED709.10; and
- a 6.4-percent decrease in revenue per available room to AED567.50.
Dubai’s 80.0-percent occupancy level for May was helped by increased business travel from the Arabian Hotel Investment Conference (AHIC) and the International Design Exhibition (INDEX).
According to STR Global analysts, slight uncertainty exists amongst investors in Dubai due to low oil prices. However, Dubai has established a successful flow of tourism in which to rely upon during such times. New prospects on the horizon, such as the Dubai Design District, also should bring a new mix of visitors to the city.
STR Global will release May 2015 results in two weeks. The June edition of the STR Global Hotel Market Forecast is now available.