Dubai's hotels beat all odds

Amidst the decline of property sector in Dubai, hospitality seems to beat all odds to come out tops. Hotel occupancy rates are up to 81 per cent while the average daily rates, or ADRs, have stabilized in the emirate. Interestingly the strongest growth was registered by beach hotels which saw a 11 per cent hike in revenue per available room compared to the same period last year. A recent report by leading property consultancy firm Jones Lang LaSalle indicates that by the end of the first half, Dubai’s total hotel supply was 52,300 rooms reflecting an increase of two per cent compared to the end of 2010. Another 2,500 rooms are expected to enter the market over the remainder of 2011, the report said. Moreover a huge tourist inflow -- projected to be around eight million -- is likely to have a positive impact on the hotel performance. With a predicted 17% growth in tourists, the hotel industry is expected to maturate further.