GuestReady forecasts 39% increase in vacation rental income during Dubai’s top events in 2020
As Dubai gears up for an action-packed calendar in 2020, GuestReady Dubai, a leading holiday home management company, has unveiled the top occasions for house owners and property investors to look out for throughout the year. With the Dubai Summer Surprises (DSS) and the Dubai Jazz Festival expected to spur a substantial increase in international visitation, landlords stand a chance to earn up to 39 per cent more than they would in the course of a typical week.
Leveraging insights from information provided by AirDNA, which analyses the performance of over 10 million holiday rentals throughout 80,000 cities worldwide, GuestReady Dubai has recognized Arab Health, the Dubai International Boat Show, the Dubai Duty-Free Tennis Championships, the Dubai Design Week, and Expo 2020 Dubai as other predominant events where hosts can maximise their incomes potential by making sure that the reserving calendar is open for guests to make reservations.
With the three-day Dubai Jazz Festival underway, landlords can earn an average income 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 reserving is set to be seven as opposed to 6.21 nights besides the event, and reserving 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 reserving 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 range of mega events packed with a host of activation and festivals each and 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 notably expected events such as Expo 2020 Dubai, holiday homes are projected to experience a tremendous enlarge throughout three key KPIs of occupancy, ADR and RevPAR. We have reaffirmed our commitment to delivering superior value to our customers by offering the actionable insights that will assist them plan ahead to capitalize on approaching opportunities to generate extra returns.”
During the summer duration between May and September, rental residences in Dubai experience a low season with the average daily rate (ADR) ranging from AED 467- 565. However, all the active properties blended can look ahead to earning a magnificent AED 79.65 million in revenues, with an anticipated ADR of AED 495 and average 9 nights per booking, throughout the annual citywide shopping extravaganza DSS, which is set to run from 21 June - 3 August 2020. RevPAR per day is predicted to go up to AED 318.43 in the course of the event from non-event day RevPAR of AED 228.83 with a reserving lead time of 38-46 days.
Vacation rental owners in Dubai are projected to experience AED 571-800 in ADR in the course of the February-April and November-December high season period. December is predicted 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 extensively in the hospitality industry, RevPAR measures the financial performance of a property, offering insights into how much income is being generated from bookings. RevPAR is calculated by multiplying the share of available rooms sold (occupancy) by the rate charged for those rooms (ADR).