Thursday, May 28, 2015

Dubai: Profitability of Dubai hotels was down 19.5 per cent month-on-month in April, according to a new report from hospitality intelligence company HotStats.

Gross operating profit per available room (GOPPAR) reached $273 (Dh1002) last month. It touched $285.2 year to April, from $316.87 during the same period in 2014.

Profitability was weighed down by a 12.8 per cent reduction month-on month in average room rate (ARR) to $373.78. Occupancy edged down to 84.9 per cent from 85.6 per cent in April 2014. As a result, revenue per available room (RevPAR — an industry benchmark for performance) dropped to $317.2 from $366.9 during the same period a year ago.

“The combined effect of the falling euro and stronger US dollar is one of the key challenges facing the city, forcing hoteliers to reduce ARR in order to maintain occupancy levels at 84.9 per cent,” HotStats said in a statement.

Food and beverage revenues fell by 19.8 per cent and 26.7 per cent respectively, which led to a 15.7 per cent decline in total revenue per available room (TRevPAR).

Elsewhere in the region, hotels in Cairo saw occupancy increase by 12 per cent to 53.5 per cent month-on-month in April and ARR up 9.9 per cent to $111.2. This led RevPAR to rise by 42 per cent to $59.5. GOPPAR was up 29 per cent to $44.85.

Meanwhile in Amman, hotel occupancy was down 10.8 per cent to 62.3 per cent, while ARR dropped 4.3 per cent to $154.9, resulting in RevPAR to fall 18.5 per cent to $96.48.

Staff Report

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