Dubai: New branded hotel openings set to peak in Q4 during Expo 2020
Global consultancy Colliers said in its quarterly Mena report that Dubai is expected to see the opening of about 40 per cent of 2021 forthcoming supply in the fourth quarter in time for Expo 2020 Dubai
The opening of branded new hotels in Dubai is set to peak in the fourth quarter of 2021 during Expo 2020 when the demand level will also reach a very high level as a large number of foreign visitors will be visiting the emirate for the mega event.
Global consultancy Colliers said in its quarterly Mena report that Dubai is expected to see the opening of about 40 per cent of 2021 forthcoming supply in the fourth quarter in time for Expo 2020 Dubai.
It said the branded hospitality market in UAE reached 108,040 keys by the end of Q2 2021, with Dubai being the largest contributor to the new supply followed by Abu Dhabi.
“The supply in the market is expected to increase at a CAGR (compound annual growth rate) of eight per cent between 2021 and 2023. This will introduce an additional 17,470 keys to the market. However, the ongoing Covid-19 pandemic is expected to have an influence on hotel openings during this period which will inevitably delay some openings,” Colliers said.
Ralph Onaly, commercial director at DoubleTree by Hilton Dubai M Square, said Dubai is aiming to complete 160,000 hotel rooms by October 2021, in time to welcome the expected 25 million visitors for Expo 2020.
“We are confident that we will be able to achieve this and make Expo Dubai one of the biggest and most successful events globally,” he said.
Colliers projected that the number of hotel rooms in the UAE are projected to increase from 111,390 in 2021 to 119,940 in 2022 and 128,860 a year later.
As a result of the easing of Covid-19 pandemic restrictions, hotel occupancy also increased in the UAE.
“Cities across UAE also experienced growth in occupancies when compared to the same period last year owing to ease in travel restrictions and increased staycations. In relation to Q2 2019, the overall UAE market has experienced a decline of 16 per cent in occupancy levels,” it said.
Hotels in Dubai and Sharjah experienced the highest growth in occupancy levels of 26 per cent when compared year-on-year, thanks to increased staycations during Eid break. The overall UAE market experienced a 23 per cent increase in revenues per available room in comparison to the same time last year. Dubai, Ras Al Khaimah and Fujairah recorded positive average daily rate change in comparison to Q2 2020, it said.
Colin A. Baker, regional director, Middle East, StayWell Holdings, said the Dubai Expo 2020 remains a great contributor to the hotel occupancy during the 6 months that it welcomes the world to this magnificent city with figures forecasted above 80 per cent.
“In preparation for Expo 2020 and while we continually assess the various markets expected to attend the event, we are in the process of creating exceptional value-add packages that will be of great appeal to those participating and attending the event,” he added.
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