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Dubai hotels unlikely to recover before 2012

Hotel room rates in the emirate may never again reach the record rates seen during 2008, according to CB Richard Ellis.


February 21, 2010 11:20 by

The hotel industry in Dubai may not see a complete recovery until the end of 2011 or even 2012, according to research by CB Richard Ellis (CBRE). Hotel room rates in the emirate may never again reach the record rates seen during 2008, the firm said.

While room rates globally will start to improve in 2011, it might take longer in Dubai because of its dependence on the leisure market, said Julian Kemp, associate director of CBRE Hotels EMEA in a statement.

“Leisure travel may take longer to improve and therefore leisure sector rates may remain depressed,” he said, adding that “rate improvement [in Dubai] may take longer toward the end of 2011 and beginning of 2012.”

He also said that the emirate was still seeing an oversupply of luxury accommodation, which in turn would delay an increase in room rates.


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1 Comment

  1. nabeel on February 23, 2010 10:09 pm

    For one week i am here in a visit to Dubai, I havent found
    a room in hotels or hotle flats…and prices are jumping up.
    i dont know how these surveys getting their calculation.


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