Dubai hotels report record demand and profits in Nov

JANUARY 08, 2013

Muscat: Occupancy across surveyed hotels in Dubai increased by 3.1 percentage points to 90.8 per cent while average room rate (ARR) increased 1.6 per cent to $116.81 compounding a 5.2 per cent increase in revenue per available room (RevPAR) to $327.16.

A 23.2 per cent increase in meeting revenues coupled with a slight reduction in payroll costs aided a 12.3 per cent improvement in gross operating profit per available room (GOPPAR) to $297.15, the highest in the region for the month and highest for the city in the last 36 months.

"Dubai airport has announced that passenger traffic is set to surpass the 2012 target of 56.5 million passengers almost reaching its capacity of 60 million passengers. Travellers from Western Europe flocked in to the city as a number of bank holidays such as All Saint's Day and Remembrance Day resulted in extended breaks in the EU. A number of high profile events including the World Parachuting Championships and the Helishow, aided in drawing a large number of visitors to the city," commented Peter Goddard, managing director of TRI Hospitality Consulting in Dubai. 

Hotels in Riyadh reported growth across all major performance indicators as an increase in occupancy and conferences food and beverage revenues boosted the bottom line yields. Occupancy and ARR for the month of November posted a growth of 11.4 percentage points and 2.2 per cent respectively, closing the month at 63.4 per cent and $265.22, boosting RevPAR by 24.6 per cent to $168.20. This translated in GOPPAR being 36.8 per cent higher at $152.78, compared to the same period last year. 

Hotels in Jeddah
Hotels in Jeddah reported less than encouraging results for the month of November when compared to the same period last year which coincided with the busy Hajj season. Occupancy saw a 1.1 percentage point drop to 77.8 per cent, however ARR increased by 2.9 per cent allowing for a 1.4 per cent increase in RevPAR to $177.0.      

A 10.9 per cent and 12.0 per cent growth in food and beverage revenues respectively grew TRevPAR by 1.5 per cent to $279.79. An increase in payroll costs and operating expenses weighed heavily on the bottom line as GOPPAR dropped 7.7 per cent to $127.03. A 0.3 percentage point increase in occupancy across surveyed hotels in Kuwait did little to counteract plummeting performance indicators.

ARR in the city reduced by 19.5 per cent to $239.78, resulting in RevPAR levels falling by 19.0 per cent to $141.52 as the on-going protests in the country drove the leisure demand away, affecting the room rates. Although TRevPAR increased by 1.2 per cent, higher operational costs resulted in a reduction of GOPPAR which dropped 9.1 per cent to $152.04. 

Highlights hotstats latest survey
Average room rate increased 1.6% to $116.81. This  compounds to a 5.2% increase in revenue per available room to $327.16. Gross operating profit per available room rose 12.3% to $297.15. This is the highest in the region for the month and highest for the city in the last 36 months.

© Times of Oman 2013

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