Rising tourist numbers are expected to help Dubai lift average room rates next year. The supply of new rooms is also not expected to grow as quickly as earlier projections suggested, Jones Lang LaSalle said on Sunday.
Official data show that a total of 10,000 additional hotel rooms are planned for this year. But financing problems are preventing some of these hotel projects in Dubai from reaching completion, the property consultancy said.
"We don't believe there will be 10,000 rooms," said Jalil Mekouar, the managing director at Jones Lang LaSalle Hotels, Middle East and Africa.
"These are the projects that are announced. Now how many of those are going to materialise remains to be seen.
"We do think in 2011 hotels will be stabilising and we do think in 2012 it will start to grow and average rates will start to pick up - provided not all the supply which is announced comes on board."
With demand from tourists increasing, Dubai can absorb some more new hotels, analysts say. Hotels saw occupancy levels reach 100 per cent on a number of days last month as tourists poured into the emirate. A combination of attractive hotel deals and more flights into Dubai have helped boost tourism flows into the emirate. Meanwhile, regional unrest has only helped divert more visitors to Dubai.