United Kingdom
United States
Asia Pacific
Dubai hotels suffer third year of falling profits
Dubai hotels saw their revenue per available room fall 13.5% last month due to a decline in both occupancy and rates.
Room occupancy in September was down 4.2% year on year, while the achieved average room rate fell almost 9% to $162.50.
According to data from Hotstats, the fall was prompted by the addition of 4,000 hotel rooms in the third quarter of the year, including the 414-room Rixos JBR and the 238-room DoubleTree by Hilton Business Bay.
The total number of rooms has risen to 82,200 as Dubai gears up for Expo 2020.
In addition to the drop in room revenue, hotels in Dubai suffered declines in food and beverage (-4.4%) and leisure (-17.9%) revenue on a per available room basis.
As a result, Dubai hotels are on course for a third consecutive year of profit decline, following a 20.5% drop in 2015 and a 10% fall in 2016.
"The additions to stock in the Dubai hotel market, many of which are in the mid-market segment, are inevitably diluting top line performance which is having a knock-on effect on the rest of the profit and loss," said Pablo Alonso, CEO of HotStats.
"Despite this, construction projects in the city are continuing unabated and a further 4,100 bedrooms are due to enter the market in the final quarter of 2017, with up to 40,600 rooms being developed in the next two and a half years in the lead up to Expo 2020."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled