Aug. 25–DUBAI — Hotels in Dubai experienced a 17.6 per cent increase in occupancy to 67.5 per cent during July 2016, while revenue per available room increased 7.5 per cent to Dh365.08, according to data from STR.

While average daily rate (ADR) dropped 8.6 per cent to Dh540.60, the market's demand was up 24.6 per cent year on year, due in part to a lift from Eid al-Fitr festivities. At the submarket level, the highest absolute occupancy levels were reported in Jumeirah Palm & Beaches at 74.9 per cent; and the Deira & Airport Area at 72.0 per cent. STR also noted that ADR continues to be affected by new supply.

Compared with July 2015, the Middle East recorded a 4.8 per cent rise in occupancy to 58.0 per cent. However, ADR was down 15.9 per cent to $161.82, and revenue per available room (RevPAR) fell 11.9 per cent to $93.88.Elsewhere in the GCC, Kuwait recorded a 5.1 per cent increase in occupancy to 38.0 per cent, while ADR increased 0.8 per cent to KD66.36, and RevPAR increased 5.9 per cent to KD25.21. The country's performance was primarily driven by a 25.9 per cent increase in occupancy in the Kuwait Area submarket. However, in the Kuwait City submarket, occupancy fell 3.8 per cent.

Qatar reported decreases in each of the three metrics. Occupancy in the country fell 6.6 per cent to 53.3 per cent; while ADR was down 0.8 per cent to QR491.68; and RevPAR dropped 7.3 per cent to QR261.93. According to STR analysts, the month's performance was mostly affected by an 8.0 per cent year-over-year increase in supply.

Meanwhile, Tunisia posted a significant 116.7 per cent spike in occupancy to 55.3 per cent, while RevPAR increased 100.1 per cent to TD103.37. In addition, the country's ADR dropped 7.7 per cent to TD187.00.

In the comparable month from last year, Tunisia's occupancy level was just 25.5 per cent following the terrorist attack in Sousse the previous month. Despite the stark year-over-year percentage changes, the absolute occupancy level for July 2016 was actually the highest for any month in Tunisia since October 2014. STR analysts attribute the performance to security efforts in the country, and campaigns focused on regaining the tourism business. Lower rates also may have played a role in a 114.5 per cent year-over-year increase in demand.

Beirut saw a 7.3 per cent increase in occupancy to 60.2 per cent. However, ADR was down 12.8 per cent to LP234,510.72, and RevPAR dropped 6.4 per cent to LP141,258.21. The absolute occupancy level was the highest for a July in Beirut since 2011.

The market's ADR, however, has decreased year over year for all seven months in 2016, due in part to a 2.9 per cent year-to-date increase in supply.

[email protected]