Dubai hotels experienced a significant upswing in performance during the first quarter of 2023, with an average occupancy rate of 83% from January to March. This rate is among the highest in the world and is almost comparable to the 84% occupancy rate recorded in Q1 2019 before the Covid-19 pandemic.
The hotel sector’s success can be attributed to a 26% increase in room capacity since 2019, with 148,877 rooms available in 814 hotel establishments by the end of March 2023. Additionally, both domestic and international investment in the sector has led to a 6% increase in the total number of hotels and rooms compared to Q1 2022. These developments coincided with Dubai welcoming over 4.67 million international visitors in Q1 2023.
The hotel industry in Dubai exceeded pre-pandemic levels across various performance metrics. From January to March, hotels in Dubai provided 10.98 million Occupied Room Nights, a YoY growth of 7%, and a 27% increase compared to the pre-pandemic period of Q1 2019.
The average daily rate (ADR) of AED 607 during the same period surpassed that of 2019’s AED 498. Additionally, the Revenue Per Available Room (RevPAR) in Q1 2023 increased by 21% compared to the first three months of the pre-pandemic period of 2019 (AED 417). Furthermore, the average length of stay by guests increased to four nights compared to 3.5 nights.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, said: “With global travel undergoing a paradigm shift in terms of visitor expectations and experiences, we are making every effort to ensure Dubai performs even better in 2023 and beyond to remain ahead of the curve in a highly competitive global tourism landscape.”
