Dubai hotels surpass 2019 profit level in October
Hotels in Dubai surpassed their 2019 profit levels in October, as the emirate's tourism sector continued its strong recovery in the wake of the Expo 2020 Dubai opening, and a host of other international sporting events, conferences and exhibitions.
Estimated Dubai gross operating profit per available room (GOPPAR) for October 2021 came in at 159 per cent of 2019 comparable, according to STR’s October 2021 P&L data.
“Helped by the opening of Expo 2020 and the ICC Men’s T20 World Cup 2021, Dubai’s GOPPAR reached $178, while total revenue per available room (TrevPAR) was $316,” the global hospitality industry data provider said.
Dubai’s top-line performance was also lifted during the month, as the market reported its highest monthly room rates since 2018.
The other two key markets in the Middle East and Africa region, Saudi Arabia and Qatar, did not reach 2019 GOPPAR levels, but still realised strong profits. Saudi Arabia’s October GOPPAR ($42) came in at 80 per cent of October 2019 levels, while Qatar ($49) was at 79 per cent using the same time comparison.
In the first 10 months of the year, Dubai hotels recorded a 16.8 per cent surge in occupancy. The average daily rate as well as revenue per available room (RevPar) in Dubai rose 14.9 per cent and 57.1 per cent, respectively, from January to October, according to a report from global consultancy CBRE.
“In October 2021, with the commencement of Expo 2020 and increasing levels of international visitation, we have seen a significant uplift in KPIs in the UAE,” the CBRE report said.
“The average occupancy rate across the UAE in October registered at 78.8 per cent, the highest level recorded in October since October 2015. As of October 2021, Dubai recorded the highest occupancy rate of 80.7 per cent.”
Expo 2020, which is expected to bring in 25 million visitors during a six-month period, has reported three million visits in the first five weeks since it started on October 1. Dubai International Airport has also recorded a sustained recovery in daily flights in recent months. In November, the average number of daily flights increased by almost three times higher than the 33.7 per cent increase seen globally.