A luxury hotel in Dubai will be converted into a residential property as the economic downturn hurts its revenues amid dwindling tourist numbers, UAE daily the National reported on Thursday.
A renowned hotel is "an apparent victim of the price war taking place in the city's hotel sector according to the Newspaper's resources.
Competition has grown in Dubai's hospitality sector as hotels vie for the limited number of visitors with reduced rates.
Occupancy levels in the city were down 15 percent in the first seven months of the year, compared to the year-earlier period, while revenue per available room, a key measure of performance, suffered a fall of 35 percent, according to hospitality research firm STR Global.
Dubai has more than 58,000 hotel rooms and dozens of hotel projects are underway as part of an ambitious goal to attract 15 million tourists to the city in 2015.
