STR’s preliminary December 2016 data for Dubai, United Arab Emirates, indicates strong demand growth and lower rates consistent with significant supply growth.
Based on daily data from December, Dubai reported the following in year-over-year comparisons:
- Supply: +5.7%
- Demand: +9.1%
- Occupancy: +3.2% to 79.7%
- Average daily rate (ADR): -8.4% to AED824.58
- Revenue per available room (RevPAR): -5.4% to AED657.37
This was Dubai’s highest December demand increase since 2011. The month closed with three consecutive nights of occupancy above 90%, including a level of more than 95.0% on New Year’s Eve.
Supply continues to grow in Dubai as the market prepares to host Expo 2020. STR analysts also note that while Dubai’s ADR decreased year over year, the metric is beginning to trend towards its usual Q1 levels, which are traditionally the highest of the year.
STR will release actual December 2016 results later this month. The November edition of STR’s Market Forecast is now available.