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Dubai Hotel Sector Showing Signs of Early Recovery in 2017

According to some sources the hotel industry in Dubai, recorded strong occupancy levels during the first quarter of 2017 despite continued and significant supply growth.

Based on preliminary data, Dubai recorded an occupancy level of 86.3%, which was a 2.7% uplift compared with first quarter of 2016. Average daily rate was down 6.4% over the same time period to an actual level of AED 795.00. As a result, revenue per available room decreased 3.9% to AED686.00.

A factor that likely played a big role in Dubai's occupancy growth was the UAE government's recent decisions to grant visas on arrival for Chinese and Russian nationals. While Dubai continues to add new supply, it also continues to add new leisure attractions, and expanding the market's range of potential visitors can only help drive hotel demand and profitability.

Occupancy increases were mainly pushed by the middle and lower tier hotel classes. Dubai's Midscale and Economy classes experienced a combined 7.2% year-over-year increase in occupancy, while Luxury hotels posted more moderate growth of 0.7%. Upper Upscale hotels reported a 1.1% decline. Making a few calculations we can note that the Midscale and Economy classes experienced less substantial supply growth compared with other classes during Q1, although the Upper Midscale class, which recorded the highest rate of supply growth (+13.9%), also posted a substantial increase in occupancy (+6.7%).

With more than 42,000 rooms currently Under Contract, Dubai has the largest pipeline of any city in the world. The market faces several challenges over the next few years in maintaining a demand level that can offset some of this supply growth. On the positive side, Dubai continues to attract substantial leisure business, so this is definitely one of the top markets in the industry to keep an eye on from both a supply development and performance perspective.

Dubai’s 3 Most Incredible Hotels:

1. JW Marriot Marquis

The world's tallest pure hotel. You can literally wake up above the clouds, with the top floor towering 1,164ft above the ground. The beauty behind the Marquis is that it shuns Dubai's trademark extravagance in favour of elegance. It has 1,608 rooms split between two identical towers designed to echo a palm tree. Atul Kochhar, the Michelin-starred chef at Benares restaurant in London, has a restaurant there. It's, predictably, incredible. Snoop Dogg stayed there. That's all you really need to know.

2. Atlantis The Palm

Atlantis The Palm Hotel is one of the largest and most luxurious accommodation units in Dubai, located on the famous Dubai Jumeirah Palm Island, the 5-star Atlantis Hotel offers magnificent views of the Persian Gulf.

The hotel is 3 km away from the Emirates Golf Club and Dubai Mall is a 20-minute drive away. Is the ideal place for both business and leisure travelers. Swimming pools, restaurants and bars are set in the magnificent gardens of the tropical hotel, offering luxurious services for relaxation. The hotel has an underwater labyrinth and the largest water park in the Middle East with almost vertical slides. It also features a comprehensive spa offering facial and body treatments and a gym with personal fitness coaches.

3. Burj Al Arab

One of the world's tallest hotels, rated seven stars, was built on an entirely artificial island, located at a distance of 280 meters from the shore. As expected, it was built to be one of the world's most luxurious hotels, equipped with a generous platform for Rolls Royce cars and a helicopter landing strip that can also serve as tennis court.

Projects from this area

Marquise Square, Dubai

Spectacular views of the world’stallest tower. Just seconds from the Dubai Water Canal, anticipated to become the next Dubai Marina.

A striking 29-floor structure created by a highly regarded local Emirati family developer. Inside, a luxurious range of studio, onebedroom, two-bedroom and threebedroom apartments, finished to some of the finest standards in the city.

From just AED 895,000 with only a 15% deposit, this opportunity will also offer a solution to the huge undersupply of studio apartments at the very heart of Dubai.

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Al Sana

This is a five-story serviced apartment complex, located beside RAK Hospital, in Ras al Khaimah’s premier residential district.  The RAK Free Zone is only minutes away on traffic-free roads. 

Beaches, marinas, world class golf courses, shopping centers, hotels, and all the amenities of fast-growing Ras al Khaimah are easily accessible. Downtown Dubai is an hour’s drive on a superb highway.

Mountain View’s residential facilities are ideally located for any RAK-based businessman or professional seeking a luxurious, secure, centrally located residence. Build quality is of the highest international standard, with a US-based international project management firm supervising construction.

The ground floor of the Mountain View complex will have reception, offices, gym and other services for residents and guests. Each of the 5 floors above will hold a total of six serviced apartments. The 800 sq ft one-bedroom and 1200 sg ft two-bedroom serviced apartments are available with full ownership rights at special pre launch prices

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