Dubai: UAE residents planning on a staycation in Dubai may be able to score some bargains, as hotel rates have dropped recently according to a new report.
The latest preliminary data released by STR on Wednesday showed that the cost of overnight stays at hotels across Dubai has gotten cheaper, with the average daily rate (ADR) falling by 10.6 per cent to Dh497.67, owing to a significant increase in the number of new hotel rooms.
Hoteliers are likewise seeing a decline in earnings. The revenue per available room dropped by 14.8 per cent to Dh381.20.
The hotel industry saw a supply growth of 5.6 per cent during the period, but demand could not keep up, increasing only by a marginal 0.6 per cent.
Analysts said the slowdown is also due to shorter holidays and decline in event bookings in September compared to a year earlier.
“For example last year, Dubai hosted the biennial international Congress of the International Society of Blood Transfusion,” STR said.
“Additionally, residents experienced a shorter vacation period this year, as the Eid Al Adha holiday shifted from 11-18 September in 2016 to 31 August to 3 September in 2017.”