Dubai’s hotel industry ends 2022 on a high note

Dubai’s hotel industry ended 2022 on a good note, with occupancy rates and revenue per available room (RevPAR) rising for the month of December.

According to preliminary data for the month from STR, the London-based hospitality data and analytics specialist, Dubai’s hotel occupancy came in lower than the pre-pandemic comparable, but the average daily rate (ADR) once again pushed revenue per available room (RevPAR) far above 2019 levels.

The occupancy rate recorded was 76.6 per cent, with an ADR of Dhs892.84 and revenue per available room (RevPAR) at Dhs684.03.

According to STR, the occupancy level was 2 per cent below the 2019 comparable (78.2 per cent), while ADR and RevPAR were 33.8 per cent and 31.1 per cent higher, respectively. Occupancy was slightly ahead of 2019 in both October and November.

ADR and RevPAR were well above pre-pandemic levels throughout the year.

December’s daily data showed that Dubai’s highest performance was recorded on New Year’s Eve: occupancy (91 per cent), ADR (Dhs1,765.51) and RevPAR (Dhs1,606.74). With the exception of four days during the month, daily occupancy levels remained above 70 per cent.

“We witnessed a significant spike ahead of the New Year’s Eve which I am sure was seen by all hotels across for in Barsha Heights, as they’re all comparatively affordable to the hotels in Palm Jumeirah, Downtown and Burj Khalifa areas. Across the Emirates there was a hike in occupancies of nearly 90 per cent on hotel room bookings towards the end of last year. Despite global challenges, tourism in the UAE is expected to rise significantly in 2023. Earlier last year, the relaxation of Covid restrictions and the Expo 2020 provided a boost to the country’s economy, and momentum appears to have remained consistent throughout the year. In essence, tourism will continue to be recognised as a key driver of UAE growth in 2023,” said Mohamed Rashad, front office manager, Grand Millennium Dubai Barsha Heights.

Joseph Karam, group director of Operations, Ishraq Hospitality, adds: “The holiday season has seen a considerable rise in demand in 2022. New Year’s Eve, specifically was a peak season where prices increased significantly, but the wide range of accommodation offered in Dubai enabled everyone to come and enjoy the season. As Dubai is one of the top three destinations to travel to worldwide, especially amongst Gen Z, there has been a rise in demand for affordable hotels. The holiday season also witnessed a significant rise in staycations – a great source of business for hotels across the UAE, which brought at least a 30 per cent rise in bookings in 2022 from UAE residents travelling between the different emirates during that time.”

December has also been exceptionally busy for Dubai International airport owing to a combination of factors including the seasonal influx of visitors, the recently concluded football event in Doha, and Dubai’s popularity as a preferred tourist destination over the past two years.

More than 107,082 passengers arrived in Dubai on New Year’s Eve, with 95,445 travellers arriving through Dubai Airports, 6,527 arriving via the Hatta Border Crossing, and 5,010 arriving via marine ports.

Read: Dubai welcomes over 23.7 million passengers in 2022