Even despite room rates coming under severe pressure, Dubai reportedly has the highest number of rooms under construction in the region of Middle East and Africa.
According to STR Global, a consultancy firm for the hotel industry, Dubai presented the highest number of under construction rooms with 14,385 rooms being constructed across 49 hotels towards the end of the previous month. This figure translates into 18 per cent of the overall number of rooms that are under different stages of construction in the Middle East and Africa.
Other places that have active hotel markets in the region are Riyadh and Mecca in Saudi Arabia and Doha is Qatar.
As per a JLL advisory report that was published on Monday, in the first quarter, the average per day rates in Dubai dropped 5 per cent to a value of US$273 in January and February of this year, months that are considered to be peak season. This brought down the revenue for every available room by 7 per cent during the same period.
Rates of rooms in Dubai are estimated to become affordable and this can be taken as a promising sign, stated the chief operating officer Philippe Harb at Abu Dhabi’s One to One hotels. He added that the room rates in Abu Dhabi are half of that in Dubai and this is incredible for business. Large business group bookings are returning to Abu Dhabi, Harb added.
Last year, Dubai hotels received a whopping 11.6 million guests, which rose by 6 per cent from figures in 2013. These statistics have been provided by Dubai Corporation of Tourism and Commerce Marketing. The growth rate, however, was down from the 11 per cent that was recorded in the year 2013.