For the month of August, hotels across the UAE reported an increase in occupancy rates to 73.4%, representing  an 2.1% Y-o-Y increase, but despite the peaks, average room rates fell by 8.8% to Dh463 according to STR’s latest report.  

STR also reported  that demand for hotels in the UAE increased by 5.1% in the first eight months of 2016, streaming ahead of growth seen in 2015 despite a 5.2% increase in supply burdening room rates.

ADR in the UAE has decreased over the past 20 consecutive months with RevPAR down 6.8% in August 2016 compared to the same period last year.

Elsewhere in the region, hotels in Doha reported double-digit declines, with occupancy down 11% to 54%, and  ADR down nearly 11% to 354 Qatari riyals – representative of RevPAR declines of almost 21%.

According to STR, The declines are due to significant supply growth (up 12% in the year-to-August period), coupled with lower demand (down 7.5%) with  lower oil prices contributing to 11 consecutive months of double-digit declines in RevPAR in Doha.

Overall, compared with August 2015, hotels in the Middle East recorded a 2.3% rise in occupancy rates to 65%. However, ADR was down 5.4% to $142, and RevPAR fell 3.3% to $92.5.