Revenue Per Room, or RevPar, in hotels in Dubai has jumped 59.9% in August as international confidence in the emirate continued.
Revenue climbed to US$109.29 as international visitors returned in strong numbers due to the temperature drop and a post-Ramadan resurgence.
The average daily rate (ADR) of a room during August also increased strongly, up 23.7% to US$184.23 according to data just out by STR Global.
“The holy month of Ramadan ended earlier this August compared to August 2011, and performance metrics were positively impacted because of it, showing a 19.6 percent RevPar increase across the Middle East,” Elizabeth Randall Winkle, Managing Director of STR Global told Khaleej Times.
Dubai’s tourism remains a very stronger driver of growth for the Emirate, with 577 hotels in Dubai creating a total number of rooms and serviced apartments at 75,171 according to Dubai Tourism and Commerce Marketing. The STR report states that occupancy in the hotels was running at 82.3 %, the highest in the region.
Occupancy and RevPar rates are expected to remain strong for the rest of the year as the peak exhibition season gets underway, driving international business with tourists coming or pre-Christmas shopping when the weather is at its best.
As reported on this site on 17 September, the serviced apartments sector is set for strong growth in the coming years as Emaar announced its latest project in Downtown Dubai. The BLVD is already reporting strong uptake with the first tranche of properties sold out on the opening day again reflect the interest that remains in the Dubai property market.
With Cityscape underway next week, we expect the serviced hotel apartments sector to take centre stage as a number of the big name developers are expected to announce their managed properties at the show. With many projects coming on line in the early to mid part of next year, there is going to be strong competition for this growing sector.
With the investment opportunities and revenue generation a serviced hotel apartment can generate, especially through high-end, luxury managed properties in prime locations, it’s hardly surprising that there remains huge interest in this sector.