Dubai Hotel Rooms Record a Dip in Occupancy
- Hotel Tenancy
- Revenue Plunge
- Room rates fell by 13% in April, making it the largest plunge in the past few years
- The overall profitability of the hotels fell by 19.5 percent in April as compared to the same period last year
To cut it short
Dubai hotel rooms witnessed a sharp dip in tenancy in the first half of 2015. Increased supply, shift in tourist demography and the summer effect have been major factors in determining the toll. In addition to the room rates, food and beverage revenues were also affected, falling by 19.8% and 26.7% respectively. A critical evaluation of the drop outlined the need of budget hotels to keep up the positive tangent of Dubai’s hospitality sector.