Occupancy rates in UAE hotels have recovered from the pandemic slump in the second quarter of 2022, with the upswing being led by luxury resorts and waterfront destinations, a new report showed.
Dubai and Abu Dhabi registered an occupancy rate of 75 percent and 71 percent respectively, according to a report by real estate advisory firm JLL, amid an influx of tourists in the UAE in the last five months.
“While we did see an uptick in positive sentiment towards the sector, hotel operators will need to be competitive in their offerings evolving from traditional models to get an edge, as the market matures further,” Amr El Nady, JLL’s head of hotels and hospitality in the Middle East, said.
He added: “This becomes pertinent, especially in light of managing the overall impact of inflation and the growing strength of the UAE Dirham on the purchasing power of tourists.”
Around 500 keys were completed in Dubai in the second quarter of 2022, the report said, and an additional 10,000 will be handed over in the second half of the year. By year-end total hotel stock in Dubai would reach 144,000.
In terms of the residential market, the JLL report said there continues to be a strong demand for prime residential properties including waterfront developments – mainly from investors from Eastern Europe.
Around 6,500 units were added to Dubai’s stock in the same period, while Abu Dhabi saw nearly 1,300 units being added to its residential units stock.
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