4,700 hotel rooms to be added to Dubai hospitality supply in 2013



The first quarter of 2013 witnessed the addition of approximately 500 branded hotel rooms in the Dubai hospitality market. The openings included Ocean View Hotel on JBR and the extension of the Ritz Carlton also on JBR.

According to Dubai Tourism and Commerce Marketing (DTCM), approximately 3,500 hotel rooms were added to the Dubai hospitality supply in 2012, representing a growth of 6.5% Y-o-Y.

Some projects scheduled to be completed by end of 2012 have been delayed into 2013, with around 4,700 additional rooms now scheduled to be added to Dubai hospitality supply this year.

Major expected openings during 2013 include the Conrad on Sheikh Zayed Road, Sofitel the Palm, Novotel Al Barsha, Oberoi Business Bay and Anantara Royal Amwaj on Palm Jumeirah.

The hotel industry has been growing strongly in the last few years, supported by a booming tourism industry and increasing number of international airport passengers. The increase in Emirates Airlines’ capacity, coupled with the announcement of various tourism and leisure projects, will also contribute in attracting further tourism demand, which will be instrumental in absorbing the robust hotel supply pipeline planned for the next 5 – 7 years.

Hotel performance

Dubai received over 10 million tourists for the first time during Hotel Performance (YT February 2010 – 2013)2012, reflecting a 9% increase over 2011. The positive upward trend in tourist arrivals has continued into 2013 and is reflected in the improved hotel performances across the city.

Airport arrivals registered a 13% increase in 2012, supporting the demand for hotel accommodation. Dubai airport is currently the world’s second busiest (after London Heathrow) for international visitors, and continues to experience rapid passenger growth.

Occupancy rates as at YT February 2013 have increased by 2 percentage points over the same period in 2012, reaching 88% on a city-wide basis.

Average Daily Rates have witnessed a 5% improvement compared to the same period in 2012, reaching USD 276 in YT February 2013.

As a result, RevPAR levels showed an impressive 9% growth over the same period in 2012, reaching USD 243 in YT February 2013.


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