A JLL report revealed that Dubai’s hotel sector continued to face downward pressure in the second quarter of the year amid a slowdown in visitors from Russia and the Eurozone.
The report said average daily rates (ADR) saw a 6% decrease to US $249 in the year to May. Coupled with a marginal decline in occupancy rates, revenue per available room (RevPAR) registered $208, a 9% decline year-on-year.
JLL said it anticipates ADR may soften further in the short-to-medium term, in response to the additional 30,900 keys scheduled for delivery over the next couple of years and a slowdown in visitors from Russia and the Eurozone.
Chiheb Ben Mahmoud, head of the hotels & hospitality group at JLL MEA, added: “The Dubai hotel sector maintains its position as the strongest in the region, amid continued softening of the activity indicators.
Original article source: Hotelier Middle East