Though nobody dares deviate from the official 'all is well' line, Dubai hotel occupancy is at record lows. Has the city been rumbled?
There's a quiet desperation in Dubai hotels, which have seen occupancies plummet this summer. Reliable sources told Kipp Report that average occupancy in city hotels at the end of June was 56%, the swanky new Raffles was struggling thanks to a high-rate, no-beach double whammy at 19%, while the Grand Hyatt was at 40%. The latter denies this figure. It does admit occupancy is a little lower so far this summer, but says the current rate is around 70%.
Even so, compared to last year, when DTCM claimed record occupancies of 85%, ahead of Hong Kong, Sydney, Tokyo and London and nobody was discounting rooms in Dubai, this year one can walk into most hotels at half price. Each is coping with whatever strategy best suits its market positioning, but nobody dare admit officially that there is a problem.
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Source - Kipp Report
