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Dubai: Dubai’s hotel room supply is forecast to grow at an annual compound growth rate (CAGR) of 7.9 per cent between 2014 and 2017, according to a report by real-estate consultancy JLL, which was released on Sunday.
JLL stated in the Hotel Intelligence Dubai report that total room supply in the emirate is expected to increase by 8.2 per cent this year and by 5.1 per cent in 2015.
Over the last five years, graded supply in Dubai has grown at a CAGR of 8.3 per cent.
Last year, the emirate welcomed 11 million guests, up 10.6 per cent over 2012. According to JJL’s report, year-end inflation-adjusted revenue per available room (RevPAR) increased by 10.1 per cent.
“The emirate’s rapid growth is expected to continue, helped in part by major infrastructure and development projects, including airport improvement and expansion, the tram system, Dubai Pearl, Mohammad Bin Rashid City and completion of the Trade Centre District project,” JLL said in the report
Dubai’s top source markets include Saudi Arabia, India, UK, USA, Russia, Kuwait, Germany, Oman, Iran and China, according to the Dubai Department of Tourism and Commerce Marketing (DTCM).
“Dubai has benefitted from a diversified demand base because of its leisure and business facilities. Major retail centres such as Dubai Mall and Mall of the Emirates form a substantial portion of demand due to their popularity among guests from the GCC [Gulf Cooperation Council],” JLL stated in the report.
Source: Staff Report, gulfnews.com