Dubai hotels continue to raise room rates

Dubai hotels continue to raise room rates

This despite new supply entering and about to enter the market

A recent survey revealed that hotels in Dubai have edged out their counterparts in Europe in terms of profits. Some of the factors that have contributed to the Dubai hotel industry’s growth are high occupancy and high room rates. It has also helped that most four and five-star hotels in the emirate have five restaurants, largely adding to revenue growth.

News reports said hotel rates in the emirate have risen steadily in the past year because of increasing demand from tourists and visitors. Although there are months when occupancy levels are low, and despite the new supply released in the market, slightly affecting the overall demand, hotels have continued to hike up their room rates. The reports further stated that the hotel rates shot up at an average of 1.4 per cent last month to be pegged at Dh658.12 per night, considered the highest compared to was witnessed during the peak period of 2008.Hotels are expected to have an average increase of 3 per cent revenue per available room this year.

A number of new hotels were launched during the first quarter of the year, which included Marriott Hotel and Marriott Executive Apartments in Al Jaddaf, Waldorf Astoria on the Palm and JW Marriott Marquis’ second tower on Shaikh Zayed Road. More will enter the market in the coming months: Hyatt Place in Deira, Pullman Hotel at Jumeirah Lakes Towers, Sofitel Downtown, Coral International at Dubai Sports City (DSC) and Ghaya Grand Hotel and Apartments near DSC.

Considered a global business and tourism destination, Dubai has a steady stream of tourist numbers mostly from the leisure and business sectors. Top guests come from countries such as China, Saudi Arabia, Kuwait, Germany, UK, India, USA, Oman, Iran and Russia.

With the emirate’s aim of hosting 20 million annual visitors by the year 2020, there is no other way that the Dubai hotel industry is going but up.

A survey revealed Dubai hotels are among the most profitable

Hotel prices increased by 1.4 percent, reaching Dh658.12 per night

Newest hotels include Waldorf Astoria and JW Marriott marquis