STR: Room rate and revenue exceed pre-COVID-19 levels in 2019

1607 dirhams average hotel room revenue in Dubai during the «New Year»

The hotel market in Dubai saw the entry of 20,000 new hotel rooms by the end of 2022. Reuters

The STR Foundation, which specializes in research and consulting, revealed that the hotel market in Dubai recorded its highest performance in December 2022, during New Year's Eve, according to preliminary data on a daily basis.

The institution stated that the hotel occupancy rate during New Year's Eve reached 91%, while the average hotel room price exceeded 1765 dirhams, while the average return on the room "revenue" reached about 1607 dirhams.

Powerful performance

And data of the institution, of which «Emirates Today» obtained a copy, indicated that hotel establishments operating in Dubai achieved strong levels of performance during December 2022, compared to the rates of 2021, pointing out that the average price of a hotel room in the emirate pushed the revenues per available room much higher. From the levels of 2019 (the period before the “Covid-19” pandemic).

She added that, with the exception of four days during December, the daily occupancy levels remained higher than 70%, noting that the hotel room occupancy rate during December 2022 reached about 76.6%, while the average hotel room price reached about 893 dirhams, which contributed to an increase The average return from one room to more than 684 dirhams.

According to STR data, the hotel occupancy level during December 2022 was 2% lower, compared to 2019, which was 78.2% at the time, while the average daily rate was 33.8% higher, and the room revenue rate was 31.1% higher. .

In turn, the hotel occupancy rate during October and November 2022 was higher than in 2019, while the average daily rate and revenues were much higher than pre-pandemic levels throughout the year.

20 thousand rooms

The data show strong levels of performance, as the hotel market in Dubai witnessed the entry of more than 20,000 new hotel rooms at the end of 2022, compared to the end of 2019 before the “pandemic.” Despite this, occupancy rates show a remarkable performance at a time when the average The price of the hotel room and the return are the pre-"pandemic" levels.

Visitor traffic

According to the latest statistics on the performance of the tourism sector and the number of international visitors, issued by the Department of Economy and Tourism in Dubai, the emirate attracted 12.82 million international tourists between January and November 2022, compared to 6.02 million international visitors in the same period of the previous year, an increase of about 113%.

According to the department's data, Dubai received more than 1.4 million international visitors during November 2022 alone, while the total number of visitors during the period between January and October of 2022 approached levels before the "Corona" pandemic, at a time when the indicators exceeded each of: the number of rooms Hotel accommodation, nights booked, average daily rate, as well as average return per room, pre-"pandemic" levels as well.

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