DUBAI PROPERTY MELTDOWN Hotel Sector Sees Knock-On Effect
Dubai's fortunes have taken a decided turn for the worse as the hotel sector is reportedly attributing the crash and burn of the real estate market to have a profound effect on hospitality trading levels. Back of December 2009 figures released by STR Global the market suffered a whopping year on year slump in RevPAR of 31.4% over 2008.
During the boom years property buyers, consultants, developers, lawyers, and financial institutions were a significant segment for the hotels, but that has all come to an abrupt fall. Hotels are now looking to create a healthier market mix but while global long haul remains challenging, they are now competing with a much larger playing field.
It's interesting to note that the one Middle East market defying the trend is long suffering Beirut, which according to STR Global saw December RevPAR increase by 62.1% and occupancy up by 27.5% over the previous year.