Dubai hotels are continuing to cut average daily rates in attempts to try to stimulate the traditional levels of high demand, which dipped drastically in October this year, said a report.

According to STR Global's preliminary October 2015 data, Dubai hotels reported performance decreases in October with occupancy rates slipping 2.2 per cent to 79.9 per cent compared to a strong October in 2014.

Average daily rates slipped 13.9 per cent to Dh883.06 despite increases in supply (+5.7 per cent) and demand (+3.4 per cent).

Hotels also reported a 14.8 per cent drop in revenue per available room to AED705.44, the report said.

A slowing in demand in Dubai can be attributed to the shift of Eid al-Adha from October 2014 to September 2015. Despite the decrease in occupancy, however, absolute occupancy remained above historic trends for the month, it said in a statement. – TradeArabia News Service