Hotels in the UAE experienced a 0.7 per cent decrease in occupancy in October to 78.5 per cent as well as double-digit drop in average daily rate (-10.3 per cent to Dh753.30) and revenue per available room (-10.9 per cent to Dh591.31).

According to STR supply growth (+5.1 per cent) outpaced demand (+4.4 per cent) for the month resulting in the slight dip in occupancy. STR Global analysts attribute the drop in ADR to a weak euro. With a decrease in international arrivals from Europe hotels have lowered rate in an effort to sustain demand.

Dubai saw occupancy dip 2.5 per cent to 78 per cent. The market also reported double-digit decreases in ADR (-11 per cent to Dh871.96) and RevPAR (-13.2 per cent to Dh697.20). The shift of Eid Al Adha from October 2014 to September 2015 negatively affected performance especially at the beginning of the month. ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand STR said in a report.

According to the latest HotStats Mena Chain Hotels Market Review five and four star hotels in Dubai continued to experience weakening average room rates in September falling 2.3 per cent to $207.55. Occupancy levels of Dubai hotels remained stable albeit marginally lower than the same period last year at 76.6 per cent.

According to the report Growth in demand for hotel accommodation in Dubai has slowed in 2015 compared to 2014 with growth of 5.1 per cent versus 6.4 per cent in 2014. The rise in the supply of hotel accommodation over the same period has outpaced demand growth with 6.7 per cent growth in 2015.

STR report said hotels in both the Middle East and Africa reported negative results in the three key performance metrics when reported in dollar constant currency.

Compared to October 2014 the Middle East subcontinent reported a 4.6 per cent decrease in occupancy to 67.4 per cent a 12.3 per cent drop in average daily rate to $200.66 and a 16.3 per cent decline in revenue per available room to $135.24.

The Northern Africa and Southern Africa subcontinents experienced a 0.3 per cent decline in occupancy to 62.3 per cent a 4.9 per cent drop in ADR to $111.85 and a 4.6 per cent decrease in RevPAR to $69.70.Performance of featured countries for October 2015 (local currency year-over-year comparisons):

Egypt reported decreases across the three key performance metrics: occupancy (-2.9 per cent to 59.2 per cent) ADR (-2.9 per cent to EGP625.72) and RevPAR (-5.7 per cent to EGP370.48). Absolute occupancy for the month remained comparable to October 2014 as well as September 2015. As the hotel industry in Egypt continues its recovery year-to-date RevPAR is up 31.2 per cent. However the 31 October Russian plane crash in the Sinai Peninsula is expected to weaken performance results for November.

Qatar saw a 6.2 per cent decrease in occupancy to 74.1 per cent and a 6.2 per cent decline in RevPAR to QAR515.91. ADR in the country remained flat at QAR695.85. Supply increased by 5.5 per cent for the month - the highest supply growth for any month in Qatar since March 2013. With supply growth above three per cent for each month since August occupancy has decreased by at least five per cent in three straight months.

Beirut recorded a 9.2 per cent decrease in occupancy to 51.5 per cent a 6.9 per cent drop in ADR to LBP221116.01 and a 15.5 per cent decline in RevPAR to LBP113882.46. STR Global analysts cite security concerns and a high volume of Syrian refugees as reasons for the performance decreases in October.