Hotels in the Middle East reported negative performance results in January, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
Occupancy levels in the Middle East dropped 0.9 per cent to 68.2 per cent and average daily rate (ADR) dipped 8.9 per cent to $154.18, resulting in a 9.6 per cent decline in revenue per available room (RevPAR) to $105.16.
In Dubai, UAE, occupancy rates were recorded at 82.0 per cent in January, down 5.0 per cent compared to the same month in 2018.
ADR also declined 10.9 per cent to Dh716.78 ($195.1), with RevPAR slipping 15.3 per cent to Dh587.70 ($159.9).According to STR analysts, occupancy and rate declines are to be expected for the market with a significant amount of new inventory in the pipeline ahead of Expo 2020.
As of January, Dubai showed 170 projects in construction accounting for 48,759 rooms.
At the same time, demand (room nights sold) grew for the fourth consecutive month, and overall performance was solid during the first five days of the month thanks to New Year’s celebrations as well as Arabplast international trade exhibition.
In Abu Dhabi, occupancy rates went up 1.9 per cent to 78.0 per cent and ADR climbed 5.4 per cent to Dh449.72 ($122.4), pushing RevPAR up 7.5 per cent to Dh350.88 ($95.5).
Even with supply growth of 11.2 per cent, Abu Dhabi achieved its highest January occupancy since 2008.
STR analysts credit a 13.4 per cent spike in demand to the Asian Cup football championship.
Performance results in Africa were positive for the month of January, with occupancy rates rising 0.3 per cent to 53.4 per cent and average daily rate (ADR) going up 2.1 per cent to $120.06. Revenue per available room (RevPAR) also jumped 2.4 per cent to $64.06. - TradeArabia News Service
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