Hotel industry in Dubai picks up pace amid demand

The boom days are back for Dubai hotels, a majority of which are running at occupancy levels comparable to 2008, and this is likely to continue, according to Peter Goddard, Managing Director of TRI Hospitality Consulting.
"The upper four-star, five-star and luxury hotels are likely to witness a 5-10 per cent increase in average daily rates (ADRs) in 2012, with rates at the mid-market hotels remaining static," Goddard said.
Global consulting firm Ernst & Young (E&Y) also expects ADR growth to hover around the five per cent mark for the year.
"Dubai is witnessing a growth in leisure demand. The political instability in some markets across the region such as Egypt and Syria has forced an upward growth in leisure demand in Dubai," says Yousuf Wahbah, Mena head of Transaction Real Estate at E&Y.

Article continues below

Full occupancy
Typically, it is the MICE (meetings, incentives, conferences, and exhibitions) market that pushes room rates up in the city's hotels, as it works for most hotels around the world.