The hotel industry in Dubai achieved remarkable performance in December, recording the highest revenue per available room since 2007, driven by the holiday season and increased tourism activity, as per preliminary data from CoStar, a global real estate analytics firm.
The data indicated significant growth in key metrics compared to the same month last year. The occupancy rate for December reached 84.3%, an increase of 3.4%, while the average daily room rate soared to AED 1,042, marking an 11.1% rise. Additionally, revenue per available room (RevPAR) reached AED 878.19, up by 15%.
The hotel market experienced peak performance during New Year’s Eve, with an occupancy rate of 94.1%, an average daily room rate of AED 2,286, and RevPAR at AED 2,151. For the first time in Dubai’s history, both the average room rate and average yield exceeded AED 2,000.
Furthermore, the market sustained high levels of occupancy and room prices for over nine consecutive nights beginning December 23, maintaining an occupancy rate above 80% and daily room prices exceeding AED 1,000. This trend illustrates the strong demand for hotels in the emirate during the holiday season.
These results underscore Dubai’s continued commitment to solidifying its position as a global tourist and investment hub, showcasing the hotel sector’s ability to deliver exceptional performance amid rising demand for luxury accommodations and upscale hotels.