Hotels in Dubai witnessed significant growth in demand (room nights sold) in August, but performance levels remained low due to pressure from increased supply, a report said.

Although demand for the month rose 7.4 per cent compared to the same period last year, a subsequent 7.6 per cent increase in supply saw occupancy level dropped 0.2 per cent to 68.5, with average daily rate (ADR) dipping 12.5 per cent to Dh389.11 and revenue per available room (RevPAR) declining 12.6 per cent to Dh266.57.

STR analysts note that as the market prepares to host EXPO 2020 (October 20, 2020, through April 10, 2021), hotel rooms are being competitively priced in an effort to stimulate demand and keep up with accelerating room supply. This has been a common trend among the majority of key markets in the Middle East since the drop in oil prices in 2014.

STR, which will release full August results later this month, provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. - TradeArabia News Service