STR Global has reported strong supply and demand growth for the UAE in May 2015 with an increase in supply by 5.6% and an 8% boost in demand.
Occupancy has also been positive, showing a 2.3% increase to 80%. This has been partially attributed to increased business travel from the Arabian Hotel Investment Conference (AHIC) and the International Design Exhibition (INDEX).
However, ADR and RevPAR have suffered.
While average daily rate has fallen 8.5% to AED 709.10 (US $193.05), revenue per available room has also gone down by 6.4% to AED 567.50 (US $154.52).
According to STR Global analysts, slight uncertainty exists amongst investors in Dubai due to low oil prices; however new prospects on the horizon, such as the Dubai Design District, also should bring a new mix of visitors to the city.
STR Global will release May 2015 results in two weeks. The June edition of the STR Global Hotel Market Forecast is now available.
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