Dubai: new brand hotel openings expected to peak in Q4 at Expo 2020 – News

Dubai – Global consultancy Colliers said in its quarterly Mena report that Dubai is expected to see around 40% of the upcoming supply opening for 2021 in the fourth quarter, in time for Expo 2020 Dubai



Dubai aims to complete 160,000 hotel rooms by October 2021, in time to welcome the 25 million visitors expected for Expo 2020. – Photo file

By Wahid Abbas

Posted: Tue, Aug 31, 2021, 6:46 PM

The opening of brand new brand new hotels in Dubai is expected to peak in the fourth quarter of 2021 during Expo 2020, when the level of demand will also reach a very high level, as a large number of foreign visitors will visit the emirate for the mega event.

Global consultancy Colliers said in its quarterly Mena report that Dubai is expected to see around 40% opening of upcoming supply for 2021 in the fourth quarter, in time for Expo 2020 Dubai.

He said the UAE branded hospitality market had reached 108,040 keys by the end of the second quarter of 2021, with Dubai being the biggest contributor to the new offering, followed by Abu Dhabi.

“The supply in the market is expected to increase at a CAGR (compound annual growth rate) of 8% between 2021 and 2023. This will bring an additional 17,470 keys to the market. However, the ongoing Covid-19 pandemic is expected to influence hotel openings during this period, which will inevitably delay some openings, ”Colliers said.

Ralph Onaly, Commercial Director of DoubleTree by Hilton Dubai M Square, said Dubai aims to complete 160,000 hotel rooms by October 2021, in time to welcome the 25 million visitors expected for Expo 2020.

“We are confident that we will be able to achieve this goal and make Expo Dubai one of the most important and successful events in the world,” he said.

Colliers forecast that the number of hotel rooms in the United Arab Emirates is expected to increase from 111,390 in 2021 to 119,940 in 2022 and 128,860 a year later.

Following the relaxation of restrictions linked to the Covid-19 pandemic, hotel occupancy rates have also increased in the United Arab Emirates.

“Cities in the UAE have also experienced growth in occupancy compared to the same period last year due to the relaxation of travel restrictions and increased stays. Compared to the second quarter of 2019, the overall UAE market experienced a 16% drop in occupancy levels, ”he said.

Hotels in Dubai and Sharjah saw the highest growth in occupancy rates of 26% from the previous year, thanks to the increase in stays during the Eid holidays. The overall UAE market saw a 23% increase in revenue per available room compared to the same period last year. Dubai, Ras Al Khaimah and Fujairah saw a positive average daily rate change from the second quarter of 2020, he said.

Colin A. Baker, Regional Director, Middle East, StayWell Holdings, said Dubai Expo 2020 remains a big contributor to hotel occupancy during the 6 months it welcomes the world to this beautiful city with forecast figures greater than 80%.

“In view of Expo 2020 and as we continually assess the various markets expected for the event, we are creating exceptional value-added packages that will be very appealing to those attending and attending the event.” , he added.

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