Dubai hotels see rates decline in March

Hotels in Dubai reported significant declines in both average daily rate (ADR) and revenue per available room (RevPAR) in March, according to preliminary data from research firm STR. The steepest fall was in RevPAR, which slid 11 per cent to Dh652.61 ($177.6) while ADR dropped 9.8 per cent to Dh756.21 ($205.8), it said. The decline in rates is a result of a number of new projects expected to enter the market in the next few years. However, despite the decrease there was notable growth in both supply and demand, which went up 6 per cent and 4.6 per cent respectively, data showed. Occupancy remained high at 86.3 per cent, slipping just 1.3 per cent. According to STR, demand was boosted by events like GFIA (Global Forum for Innovations in Agriculture, 20-21 March), ARABLAB The Expo 2017 (20-23 March) and DIHAD (Dubai International Humanitarian Aid & Development Conference & Exhibition, 21-23 March)