By Andy Sambidge

Average daily rates for beach hotels in Dubai were twice that of city centre properties during the second quarter of 2010, Jones Lang Lasalle has said.

The property consultancy said in a new report that daily rates were AED1,386 at beach hotels, compared to AED660 for city centre locations.

The report added average occupancy in quality hotels across Dubai increased during Q2 to 80 percent, up five percent from the beginning of 2009.

“While city centre and beach hotels are achieving similar occupancy levels, the average daily rates remain significantly higher in beach hotels,” Jones Lang Lasalle said.

It added that the total hotel supply increased to around 46,000 rooms as of Q2 2010, up eight percent since the end of 2009, following the completion of projects including the Armani Hotel and the Sofitel and Movenpick hotel on Jumeirah Beach.

JLL’s latest analysis showed that the quality hotel segment (four and five star) still dominated the hotel inventory and represented more than 60 percent of the total supply.

On the outlook for the emirate’s hotel sector, Jones Lang Lasalle said “strong demand” was expected over the short to medium term, maintaining occupancy rates in the low to mid 70 percent level.

“However the new supply coming on the market is expected to intensify competition and negatively impact average daily rates and revenues per available room, particularly in less established locations,” it added.