Dubai hotels now more affordable, but rank fourth priciest in world

As per the 2014 index, Dubai ranked as the second most expensive city in the world for hotel guests when the average room rate stood higher at $273.

Dubai - Hotels in Dubai have become more affordable with the city now ranks as the world's fourth-most expensive place compared to its position in 2014 as the second costliest for visitors to spend the night, an index of priciest global cities revealed on Tuesday.
With an average daily hotel room cost at $255 Dubai ranks behind San Francisco ($397), Geneva ($292) and Milan ($271) as the most expensive city in terms of hotel room rates, according to the 2015 World Hotel Index compiled by Bloomberg.
As per the 2014 index, Dubai ranked as the second most expensive city in the world for hotel guests when the average room rate stood higher at $273. "In other words, Dubai is becoming more affordable for tourists with rates falling by more than six per cent as the hospitality industry continues to witness steady growth in inbound tourist traffic as well as in the number of hotel rooms," said an industry analyst.
In 2014, Dubai's hotel establishments welcomed 11.63 million guests, registering a 5.6 per cent increase over guest arrivals in 2013, according to figures published today by Dubai's Department of Tourism and Commerce Marketing (DTCM).
Dubai's hotels and hotel apartment establishments recorded an increase in guest nights in 2014, increasing by 7.4 per cent from 41.58m in 2013 to 44.66 million in 2014. The average length of stay increased from 3.78 days to 3.84 days.
Revenues for hoteliers and hotel apartment operators saw significant growth, with total revenues reaching Dh23.9 billion for 2014, up 9.8 per cent from Dh21.8 billion in 2013. Room revenues increased by 12 per cent year-on-year and F&B and other revenues increased by 6.1 per cent year-on-year.
According to DTCM, growth in revenue is notable, considering the 9.2 per cent increase in available rooms in Dubai during this period. At the start of 2014, Dubai's portfolio of hotels and hotel apartment consisted of 84,534 rooms across 611 properties. By the end of 2014, this had increased to 92,333 rooms across 657 properties. The figures indicate that Dubai's hospitality industry remained vibrant as the city stays on track to meet its target of welcoming 20 million visitors by 2020.
In 2014, Dubai was ranked as the second most expensive city for hotel guests after Geneva, where the average cost for a hotel night was $308, followed by Dubai at $273, Kuwait City at $253, and Zurich at $250. In the US, Miami (fifth on the list) is the costliest place for lodging, at $245 a night; New York is No. 10, at $233 a night, while San Francisco, 17th on the list, averages $211 a night.
The average price for a San Francisco hotel room has jumped 88 per cent in the past year to $397 a night, according to an index of the world's top 100 financial centers. 
San Francisco is one of 25 lodging markets with a year-over-year increase in room rates, the Bloomberg data show. Chicago had the second-biggest gain, with a 64 per cent surge, followed by a 47 per cent jump in Milan and a 33 per cent rise in Kuala Lumpur.
Among US cities where hotel costs have fallen, New York had the biggest decrease, with a 13 per cent decline to an average room rate of $202. In Europe, Paris hotels were among the biggest losers, with a 37 per cent drop to $146.
Nightly prices in Budapest fell by more than half, the greatest decline worldwide, to $85. Globally, the cheapest market is Hanoi, Vietnam, where rooms average $62 a night.
Geneva is the priciest city for five-star hotels in luxury category with amenities such as spas, full-service health clubs and signature golf courses, according to Bloomberg data tracking 30 cities. Rooms at hotels in that category average $622 a night in the Swiss city, up 1.3 per cent from last year. Los Angeles ranks No. 2, with five-star stays soaring 21 per cent to $582, and Riyadh ranks 10th at $328.
Moscow and Manama, Bahrain, boast the cheapest stay in a five-star hotel with luxury rooms averaging $228 a night.
- issacjohn@khaleejtimes.com