Dubai - Hotels in Dubai recorded triple-digit profit growth per room in June but total gross operating profit in the first-half were nearly nine per cent below the same period last year, according to HotStats figures released on Monday.

Hotels in Dubai recorded 230 per cent year-on-year growth in profit per room, which is a staggering increase, but from a very low base, at just $1.93, and represented an uplift of just $4.83, it said.

Revenues per available room increased six per cent to $83.13 while combined total of all revenues divided by the total available rooms (TrevPar) increased 2.4 per cent to $172.9 in June 2018 as compared to same month last year. While total gross operating profit (Goppar) increase 230 per cent to $6.76 during the month.

"The growth in Goppar at hotels in Dubai was on the back of a fairly average uplift across all other measures, which included an increase in rooms revenue (up 5.9 per cent) and non-rooms revenue, which contributed to the 2.4 per cent year-on-year increase in TrevPar, to $172.91," HotStats said.

"Whilst the triple-digit profit growth for Dubai hoteliers this month looks extremely positive, the movement as a quantum was very slight. Furthermore, it has unfortunately done very little to improve the overall profit picture in the UAE city for the year so far as GOPPAR levels for H1 2018 remain almost 9.0% below the same period in 2017," said Pablo Alonso, CEO of HotStats.

Hotels in Abu Dhabi recorded a 3.5 per cent increase in RevPAR in June, which was in spite of a 2.7 per cent decline in achieved average room rate, to $97.49, as room occupancy grew by 3.2 per cent year-on-year to 53.8 per cent.

That said, at just $52.45, RevPAR at hotels in Abu Dhabi was one of the lowest recorded in the city in recent years, second only to June 2017, when it hit a low of $50.68, further illustrating the operational challenges typically faced by hotels in the region, including the UAE.

Hotels in Abu Dhabi faced further woe as the increase in rooms revenue was cancelled out by declines across non-rooms departments, which included food and beverage (5.2 per cent drop) and leisure (22.7 per cent) and as a result, TrevPAR fell by -0.6% to $110.45.

HotStats said hotels in the Middle East and Africa continued to suffer from the challenges borne out of the decline in the oil and gas industry in June, as profit levels dropped to their lowest level in 2018, at just $44.89, which was more than $40 below the year-to-date Goppar level of 76.41.

Total revenue at hotels in the MEA fell 0.5 per cent in June, to $163.68 on a per available room basis, which was the lowest TrevPAR recorded in the region since July 2017 and was almost $40 below the year-to-date figure, at $201.04.

Hotels in the region have been forced to cut costs due to the continued decline in revenues, which this month included a 0.4 per cent saving in Payroll, which dropped to 33.3 per cent of total revenue.

 

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