Tuesday, Sep 27, 2016

Abu Dhabi: Hotels in the UAE reported an increase in occupancy rates in August 2016 to 73.4 per cent — up 2.1 per cent year-on-year — but saw lower room rates, which fell 8.8 per cent to Dh463.

According to the latest report by STR, a data provider, demand in the country’s hotel was up 5.1 per cent in the first eight months of this year — well ahead of last year’s growth rate — but a 5.2 per cent increase in supply continued to put pressure on daily room rates.

Average daily rate (ADR) in the UAE has decreased over the past 20 consecutive months on a year-on-year basis, with Revenue Per Available Room (RevPAR) down 6.8 per cent in August 2016 compared to the same month in 2015.

Elsewhere in the region, hotels in Doha reported double-digit declines, with occupancy down 11 per cent to 54 per cent, ADR down nearly 11 per cent to 354 Qatari riyals, and RevPAR falling nearly 21 per cent lower.

The declines were due to significant supply growth (up 12 per cent in the year-to-August period), STR said in its report, coupled with lower demand (down 7.5 per cent). Lower oil prices have also led to 11 consecutive months of double-digit declines in RevPAR in Doha.

Overall, compared with August 2015, hotels in the Middle East recorded a 2.3 per cent rise in occupancy rates to 65 per cent. However, ADR was down 5.4 per cent to $142, and RevPAR fell 3.3 per cent to $92.5.

Staff Report

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