STR’s preliminary October 2016 data for Dubai, United Arab Emirates, indicates performance declines consistent with significant supply growth.
Based on daily data from October, Dubai reported the following in year-over-year comparisons:
- increases in supply (+6.0%) and demand (+3.9%);
- a 2.0% decrease in occupancy to 77.9%;
- a 10.3% decrease in average daily rate (ADR) to AED767.58; and
- a 12.0% decrease in revenue per available room (RevPAR) to AED598.09.
The absolute occupancy level would be the lowest for an October in Dubai since 2011. STR analysts note that demand from the annual Gulf Information Technology Exhibition (GITEX), held 16-20 October, was outweighed by continued supply growth in place for Expo 2020 Dubai.
STR will release actual October 2016 results later this month. The August edition of STR’s Market Forecast is now available.