According to JLL’s UAE Real Estate Market Research of Q3 2021, 10,000 hotel keys are expected to be delivered in Dubai and 800 keys in Abu Dhabi by Q4 2021.
Occupancy in Dubai reached 58 percent in August 2021, a notable increase when compared with the corresponding period last year (38 percent). The city’s average daily rates (ADR) were down by 1 percent year-on-year to USD 130 in the YT August 2021. Meanwhile, occupancy rates in Abu Dhabi rose to 63 percent over the same period, compared to 60 percent for YT August 2020. However, ADRs remained under pressure in the capital, declining by 5 percent year-on-year to USD 86 in the YT August 2021.
The UAE hotel market is continuing its gradual recovery from the pandemic, with the luxury market taking advantage of strong leisure demand owing to the country being one of the few international destinations open for tourism.
Luxury offerings and ease of travel restrictions have helped capture demand from European source markets. In contrast, the mid-scale and budget segments remain under pressure, awaiting the return of business travel as well as the reopening of key Asian source markets.
Expo 2020 aims to attract visitors to Dubai over the next two quarters. Recently completed hotel projects should be well placed to benefit from the anticipated influx of tourists.