STR’s preliminary data for Dubai shows hotel performance declines worsening as concern around the COVID-19 pandemic broadens.
February preliminary data:
- Occupancy: -9.4% to 77.1%
- Average daily rate (ADR): -14.4% to AED567.63
- Revenue per available room (RevPAR): -22.5% to AED437.41
Weekly data from 1-8 March 2020 (year-over-year comparisons):
- Occupancy: -28.2% to 60.6%
- ADR: -20.4% to AED498.13
- RevPAR: -42.9% to AED301.68
STR analysts note that Dubai’s occupancy, ADR and RevPAR decreased for 37 consecutive days (1 February through 8 March) in year-over-year comparisons. The steepest declines occurred in the most recent of those days. Of note, the market was already experiencing some declines in the metrics during the last two weeks of January, and the more significant decreases started on 26 January.
While Dubai has seen negative performance comparisons like most other major cities around the globe, STR analysts highlight the market’s ability to sell six of every 10 rooms on average during the first week of March.
STR continues to monitor the COVID-19 impact on the hotel industry. More information and analysis, including a recent Middle East & Africa webinar, can be found here.