Four Deloitte rankings on hotel performance in Dubai in 2021

Global consultancy Deloitte has released its latest analysis of the hotel scene in Dubai. A summary of the main findings of the report in four graphs.

Across all hotels in Dubai, occupancy and revenue performance in 2021 increased significantly compared to the prior year, driven in particular by strong performance in the second half of the year.

In 2021, occupancy increased by 35% to 66% for the full year, while revenue per available room (RevPAR) increased by 74% to AED 393. The average daily rate (ADR) jumped 29% to AED 594.

Where do foreign visitors to Dubai come from? The largest majority continues to come from India, with around 750,000 visitors noted in 2021 (less than half the 2019 mark due to Covid-19 travel restrictions).

Top 10 YTD Source Markets November 2019 & 2021

Visitors from Saudi Arabia, Russia, the United Kingdom and the United States complete the top five. Notably, the number of visitors from China fell by 92% compared to the previous two years.

Regional market performance

Compared to other major tourist cities in the region, Dubai had the highest occupancy rate in 2021. Jeddah, the only city with a higher average daily rate, saw its average occupancy rate rise at 51%, while the capital of Saudi Arabia, Riyadh recorded an overall occupancy rate of 58%.

Global market performance

Globally, Dubai hotels were among the top performers in key indicators assessed by Deloitte. Paris, Rome and New York were the standouts in terms of annual change in RevPAR, while at the other end of the spectrum, hotels in Buenos Aires (which rely heavily on international tourists) and Sydney (which have had to deal with a border closure for tourists) was the hardest hit.

Looking ahead to 2022, Dubai’s successful handling of the Covid-19 pandemic and Expo 2020, as well as the global recovery in tourism, should see further improvements in the local hospitality industry.

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