27 August 2009

Dubai hotel rates bouncing off the bottom

DUBAI - Dubai hotels experienced a substantial improvement in performance in July following sharp declines in revenues in the first half of the year.

Hotels in the emirate saw a 24 percent fall in revenue per available room (REVPAR) to US$107.09 last month compared with $141.03 in the same month last year, according to data from STR Global.

This represented a major improvement compared with the 33.9 percent decline seen in the previous month.Ã¢â¬~¨Ã¢â¬~¨

Ã¢â¬ÅâœThe Middle East finally showed some signs of improvement, with Dubai making significant gains,Ã¢â¬~ said James Chappell, the managing director of STR Global.Ã¢â¬~¨Ã¢â¬~¨

Occupancy levels for Dubai hotels increased last month compared with June, but were down from last year. Occupancy was 65.1 per cent last month compared with 71.7 per cent in July of last year.
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For the Middle East as a whole, there was a 16.3 per cent drop in REVPAR to $103.17 last month from $123.27 in July last year.

Occupancy levels were down to 61.1 per cent from 68.1 per cent.Ã¢â¬~¨Ã¢â¬~¨

Beirut experienced the largest increase in the region, with REVPAR up 74 per cent last month to $256.15.