The hotel industry in the Middle East is facing challenges from an economic slowdown caused by lower oil prices, with room revenues dropping significantly in Dubai and Abu Dhabi in 2016. Occupancy rates fell 4-6% and average room rates declined 10-15% across the region, according to STR Global data. However, new hotel openings will continue in 2017 with over 25,000 rooms under construction in Dubai alone, which could further pressure rates.