Hotel room rates in the UAE have exceeded pre-pandemic levels on the back of higher visitor traffic, according to a new report.

Average daily rates (ADRs) across the emirates during the first quarter of the year were 24.9% above the levels seen in 2019, the report from CBRE Middle East said.

The quarter also recorded a 5.6% increase in ADR compared to the previous year, resulting in an overall 6.8% growth in the average revenue per available room (RevPAR).

The growth in room rates has been underpinned by higher ADRs in Dubai, Abu Dhabi, Sharjah, Fujairah and Ras Al Khaimah. 

As ADRs grew, RevPARs rose significantly and exceeded their 2019 levels by 40.6% in Fujairah, 34.3% in Sharjah, 22.3% in Dubai, 19.7% in Abu Dhabi and 3% in Ras Al Khaimah.

In the year to March 2024, the UAE saw a higher influx of visitors. Overall, the number of hotel guests during the period increased by 22% compared to a year ago, with a total of 1.3 million visitors.

Dubai recorded 5.18 international visitors, registering a year-on-year growth of 10.9%. In Abu Dhabi, the number of hotel guests went up by 22% over the same period.

(Writing by Cleofe Maceda; editing by Seban Scaria)