Dubai Hotels Record 80% Occupancy In 2013

Dubai hotels recorded an occupancy rate of 80 per cent in 2013 despite a large supply of hotels in the market, according to an Ernst and Young report (EY).

Out of the GCC region, Dubai showed the strongest performance with positive growth across all of Ernest & Young Key Performance Indicators (KPIs).

Around 2,780 new four and five star hotel rooms were added to Dubai’s supply in 2013. Ocean View Hotel, the Ritz-Carlton extension on Jumeirah Beach, the Oberoi Dubai, Sofitel, Anantara on Palm Jumeriah, Conrad Hotel, Movenpick Hotel in JLT and Novotel in Al Barsha were some of the latest additons to the emirate’s hospitality market.

Yousef Wahbah, MENA head of transaction real estate at EY said Dubai’s market had “rapidly absorbed this influx” whilst maintaining a “healthy occupancy” rate in 2013.

Manama, Jeddah and Kuwait City recorded the most improvements to their hospitality industry whilst Cairo, Beirut and Jordan were amongst the cities to experience decline in 2013, compared to 2012. Doha was the only GCC country to witness a decrease in 2013.

According to the report, Cairo experienced the largest drop in revenue per available room (RevPAR), with a decrease of 41.2 per cent. The city also experienced a 16 per cent decrease in average occupancy during the year although there was no change in average daily rate (ADR).

“Continued political uncertainty and security concerns” had influenced this result, said Wahbah.

Despite Jordan’s hospitality market experiencing a decline in 2013, occupancy for December in the city was up 6 per cent. Wahbah said that although the results were “mixed” the favourable winter climate of the region would continue to support the hospitality market through the first quarter of 2014.