Dubaiuncovered

Dubai’s hotel sector is experiencing a surge in occupancy rates as the city gears up for a busy three months. This weekend alone, hotels are charging upwards of Dh2,500 per night, with limited availability. However, this is just the beginning of a 3-month period where occupancy rates may consistently reach 90% or even 100%. The increase in occupancy is partly due to staycation guests.

Despite the addition of 2,215 new rooms to Dubai’s hotel capacity between December 2022 and the end of August, room rates have remained high. Data from the hospitality industry analytics company STR shows that as of July-August, there are 831 hotels in Dubai offering 148,711 rooms. By the end of 2023, the overall hotel room capacity in Dubai is expected to reach around 154,000 units, which should be sufficient to meet the rising demand.

One of the major factors driving demand for hotel rooms in Dubai is the upcoming COP28 global sustainability conference, which the UAE will be hosting. The event is expected to give a significant boost to hotel performance in the city. Additionally, Dubai will be hosting various other events such as Gitex, the Dubai Airshow, the Rugby Sevens, and the Formula 1 in Abu Dhabi, ensuring a continuous flow of visitors. The peak end-of-year festivities in December will further contribute to the demand for hotel rooms.

Despite the increased room capacity, it is anticipated that hotel rates will rise significantly in November and December. Luxury hotels are already charging between Dh2,500 to Dh3,000 for a one-night stay during the opening weekend of COP28. Hoteliers are confident that occupancy levels will reach 90% to 100% over the next three months. Forward bookings from countries like the UK, Saudi Arabia, Germany, and Russia have been robust, and guests from these countries are planning to stay longer with their families and friends.

According to Dubai Tourism, the average occupancy for the city’s hotel and hospitality sector was 74% during January to August. Five-star properties had an average occupancy of 80%. Hoteliers are now banking on the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector to drive bookings and ensure a strong finish to the year.

For visitors interested in booking a hotel in Dubai, rates for a two-night stay on Palm Jumeirah range from Dh2,245 to Dh3,234, while downtown Dubai properties average between Dh1,100 to Dh2,689. It is worth noting that hotel room rates decreased by 8% in August and the first half of September.

With the influx of visitors expected in Dubai, hoteliers are optimistic about the prospects for the hotel sector in the coming months. The combination of major events and leisure travelers ensures that hotels will be operating at near-full capacity. It is advisable to book accommodations well in advance to secure a room during this busy period.