Dubai’s hotel room rates still highest worldwide in the first quarter of 2016


Dubai recorded 2016’s highest first-quarter average daily rate (ADR) among major markets around the world, according to the global consultancy STR. This marked the 12th consecutive year that Dubai has led this group of markets in Q1 ADR when reported in U.S. dollar constant currency.

Deluxe King Room
Deluxe King Room

Even with a 10.1% drop in year-over-year comparisons, Dubai’s ADR for Q1 2016 was US$234.88. Only three other major markets finished the quarter with ADR levels above $US200.00 in constant currency: Paris, France; New York, New York; and Singapore.

“January through March is typically a slower time for other popular markets like New York, London and Paris,” said Philip Wooller, STR’s Middle East and Africa area director. “But these are peak months for Dubai, as temperatures are more moderate, drawing in visitors from around the world. Dubai also has been one of the top five markets for year-end ADR levels every year since 2002, proving itself as the premier hotel market in the Middle East and as one of the top hotel markets in the world.”


During Q1 2016, Dubai’s performance was helped by major events including the Omega Dubai Desert Classic (golf), the Dubai Duty Free Tennis Championship, the Dubai World Cup (horse racing), the Dubai International Boat Show, Gulfood (global food and hospitality trade event) and the Arab Health Exhibition & Congress.

Dubai also has been one of the top five markets for year-end ADR levels every year since 2002.

In the Middle East and North Africa, hotel occupancy was down 3.3 per cent to 71.9 per cent year-on-year in the first quarter of this year, while ADR dropped 8.1 per cent to $188.55, according to another report by STR Global. This led to a 11.1 per cent decrease in revenue per available room (RevPAR — an industry measure of occupancy and rates) to $135.63.


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