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The hotel industry in Dubai, UAE, recorded strong occupancy levels during the first quarter of 2017 despite continued and significant supply growth, according to data from STR.

Based on preliminary data, Dubai recorded an occupancy level of 86.3 per cent, which was a 2.7 per cent uplift compared with Q1 2016. Average daily rate (ADR) was down 6.4 per cent over the same time period to an actual level of Dh795 ($216.4). As a result, revenue per available room (RevPAR) decreased 3.9 per cent to Dh686 ($186.7). Because Dubai has seen two years with consistent RevPAR declines, STR analysts see the Q1 occupancy growth as an indicator of performance recovery.

“A factor that likely played a big role in Dubai’s occupancy growth was the UAE government’s recent decisions to grant visas on arrival for Chinese and Russian nationals,” said Philip Wooller, STR’s area director for the Middle East and Africa. “While Dubai continues to add new supply, it also continues to add new leisure attractions, and expanding the market’s range of potential visitors can only help drive hotel demand and profitability.”

Occupancy increases were mainly pushed by the middle and lower tier hotel classes. Dubai’s midscale and economy classes experienced a combined 7.2 per cent year-over-year increase in occupancy, while Luxury hotels posted more moderate growth of 0.7 per cent. Upper upscale hotels reported a 1.1 per cent decline. STR analysts note that the midscale and economy classes experienced less substantial supply growth compared with other classes during Q1, although the Upper Midscale class, which recorded the highest rate of supply growth (over 13.9 per cent), also posted a substantial increase in occupancy (up 6.7 per cent).

Ahead of his presentation at the Arabian Hotel Investment Conference (AHIC) on April 26, Robin Rossmann, STR’s managing director, notes that Dubai’s strong demand is impressive considering the significance of supply growth in the market.

“With more than 42,000 rooms currently under contract, Dubai has the largest pipeline of any city in the world,” Rossmann said. “The market faces several challenges over the next few years in maintaining a demand level that can offset some of this supply growth. On the positive side, Dubai continues to attract substantial leisure business, so this is definitely one of the top markets in the industry to keep an eye on from both a supply development and performance perspective.”

Dubai has been furnished with a quintessentially British offering with the opening of the new five star DUKES Dubai hotel on the west trunk of Palm Jumeirah.

This is the first international property for DUKES, which has proven a hugely popular destination with GCC visitors in London.

DUKES Dubai, which soft-opened for training in December, consists of 279 guestrooms including 64 suites, with a ladies-only Liberty Duchess floor featuring 20 rooms, as well as 227 fully furnished hotel apartments and six distinctive dining experiences.

“DUKES Dubai brings the very best of British hospitality to the emirate. The soft opening of the hotel in December was a great success and we have already received rave reviews. We look forward to welcoming visitors and treating them to this unique experience,” said Abdulla Bin Sulayem, CEO, Seven Tides.

Serving modern British brasserie-style cuisine, the hotel’s signature outlet Great British Restaurant (GBR) will operate under the culinary direction of executive chef Martin Cahill, serving quality British produce in a dramatic setting overlooking the Gulf. The meticulously planned menu of much loved dishes includes cod and chips, Lancashire hot pot, Colchester Oysters and Dover sole, with calorific sweets taken straight from the kitchens of the Home Counties.

For lighter bites and drinks, guests can head to DUKES Bar, which is famed for its signature selection of martinis.

Of course, guests can also opt to dine at the award-winning Manhattan style grill and bar, West 14th, already located within the same development, whose executive chef, Clive Pereira, was named Gastronomic Superstar at the Leaders in Hospitality Awards 2016.

“I currently divide my time between London and Dubai and it has given me great insight into the pent-up demand, expectations and trends of British travellers, essentially it helps me to take the pulse of the British outbound market. I am confident that our offering will not only match, it will exceed their expectations – brand loyalty is the key to success for DUKES Dubai,” said Debrah Dhugga, Managing Director of DUKES Dubai and DUKES London.

The remainder of the property’s food and beverage outlets will come online within the next six to eight weeks. This will include traditional Northern Indian restaurant Khyber, marking the first international outpost for the Mumbai-based family restaurant group. Visitors can also look forward to the Tea Lounge for afternoon tea and the Cigar Lounge, offering a sophisticated selection of fine cigars and malts.