Dubai’s hotel industry saw its saw highest April 2023 occupancy levels during the Eid-al Fitr holiday period, according to preliminary data from STR.
As one of the world’s busiest transit hubs, Dubai now leverages its rich offering of attractions and activities to encourage transferring travellers to spend extended stays there. However, the city aims to establish itself as a complete tourist destination, and it appears on course to achieve that goal.
Dubai’s hotel occupancy came in lower than the pre-pandemic comparable, but average daily rate (ADR) once again pushed revenue per available room (RevPAR) far above 2019 levels, according to preliminary December 2022 data from STR.
While ADR and RevPAR fell month over month, the metrics exceeded the 2019 comparables. Occupancy came in slightly under the July 2019 level (64.7%).
Helped by strong international arrival numbers, as well as an earlier Ramadan, Dubai’s May GOPPAR reached US$115.37. That level was 776% of the pre-pandemic comparable. Just a month earlier during Ramadan, the market was at 79% of 2019 GOPPAR.
Dubai welcomed 3.97 million international overnight visitors between January and March 2022, up from 1.27 million visitors for the corresponding period last year, representing a massive 214 per cent YoY visitation growth.
Like past renditions of Expo in Shanghai (2010) and Milan (2015), the end of the 'mega event' proved to be the busiest for Dubai.
Lifted by Expo 2020 and the holiday season, Dubai’s hotel industry reported its highest monthly room rates since 2015, according to preliminary December 2021 data from STR.
Estimated Dubai gross operating profit per available room (GOPPAR) for October 2021 came in at 159% of the 2019 comparable, according to STR‘s latest monthly P&L data release.
As to be expected with the boost in hotel demand, Dubai’s ADR and RevPAR during the early Expo months have been significantly higher than comparable periods in previous years. Add in the recent Cricket World Cup to the equation, and Dubai’s ADR has reached as high as AED981 on 29 October, which was a level most comparable with a typical New Year’s Eve in the market.