As Dubai gears up for an action-packed calendar in 2020, GuestReady Dubai, a leading holiday home management company, has unveiled the top events for homeowners and property investors to look out for during the year. With the Dubai Summer Surprises (DSS) and the Dubai Jazz Festival expected to spur a significant increase in international visitation, landlords stand a chance to earn up to 39 per cent more than they would during a typical week.
Leveraging insights from data provided by AirDNA, which analyses the performance of over 10 million vacation rentals across 80,000 cities worldwide, GuestReady Dubai has identified Arab Health, the Dubai International Boat Show, the Dubai Duty-Free Tennis Championships, the Dubai Design Week, and Expo 2020 Dubai as other major events where hosts can maximise their earning potential by ensuring that the booking calendar is open for guests to make reservations.
With the three-day Dubai Jazz Festival underway, landlords can earn an average revenue of AED 2,921 with RevPAR going up 35.55 per cent at AED 584.2 from AED 430.97 from 26-28 February. Average nights per booking is set to be seven as opposed to 6.21 nights without the event, and booking lead time is expected to be 44 days. As for Expo 2020 Dubai, RevPAR is projected at AED 560-802 with eight nights per reservation, and a booking lead time of 34-62 days.
Reem Al Khatib, Managing Director GuestReady Dubai, commented: “In line with its vision to be a leading cultural, entertainment, retail, and investment hub, Dubai has been organising a number of mega events packed with a host of activations and festivals every year and as a result, the city has witnessed progressive improvement in annual visitor footfall growth. With 2020 being a milestone year for the emirate as it is set to host highly anticipated events such as Expo 2020 Dubai, holiday homes are projected to experience a substantial increase across three key KPIs of occupancy, ADR and RevPAR. We have reaffirmed our commitment to delivering superior value to our customers by providing the actionable insights that will help them plan ahead to capitalise on forthcoming opportunities to generate additional returns.”
During the summer period between May and September, rental homes in Dubai experience a low season with the average daily rate (ADR) ranging from AED 467- 565. However, all the active properties combined can look forward to earning a staggering AED 79.65 million in revenues, with an expected ADR of AED 495 and average nine nights per booking, during the annual citywide shopping extravaganza DSS, which is set to run from 21 June – 3 August 2020. RevPAR per day is expected to go up to AED 318.43 during the event from non-event day RevPAR of AED 228.83 with a booking lead time of 38-46 days.
Vacation rental owners in Dubai are projected to enjoy AED 571-800 in ADR during the February-April and November-December high season period. December is expected to be the busiest month and landlords can charge an average of AED 800 AED per night for a one-bedroom flat and AED 1,047 for a two-bedroom flat, with New Year’s Eve fetching an average of AED 4,000 for a one-night stay for a 2-bedroom flat.
A key performance metric used widely in the hospitality industry, RevPAR measures the financial performance of a property, providing insights into how much revenue is being generated from bookings. RevPAR is calculated by multiplying the percentage of available rooms sold (occupancy) by the rate charged for those rooms.