Thursday, May 26, 2016

Dubai: Hotels in the Middle East reported falling occupancy and average daily rates (ADR) year on-year in April 2016, according to a report from research firm STR.

Occupancy in the region for the month of April edged down 1.8 per cent to 71.1 per cent, while ADR fell 10.8 per cent to $174.18. This resulted in revenue per available room (RevPAR) to drop 12.4 per cent to $123.79.

In Abu Dhabi, occupancy for April was relatively flat, having reached 76.3 per cent, while ADR fell 12.4 per cent to Dh496.16 and RevPAR dipped 13 per cent to Dh378.60. Occupancy remained steady as supply growth remained subdued at 3.3 per cent.

Elsewhere in the region, hotels in Riyadh reported decreases in occupancy and ADR in April. Occupancy declined 7.3 per cent to 64.4 per cent and ADR edged down 2.6 per cent to 866.2 Saudi riyals, leading RevPAR to drop 9.7 per cent to 558.14 Saudi riyals.

Kuwait hotels saw occupancy in April edge down 0.3 per cent to 58 per cent and ADR by 2.1 per cent to 72.6 Kuwaiti dinars, resulting in a 5.1 per cent drop in RevPAR to 42.12 Kuwaiti dinars.

Supply in the country has grown 6.1 per cent year to date, and Kuwait has seen occupancy decreases in nine of 10 months following the June 2015 bombing of the Imam al-Sadiq Mosque. July 2015 was the only month during that period with positive occupancy performance due to Eid al-Fitr, according to the report from STR.

Meanwhile in Northern Africa and Southern Africa, occupancy dropped 4.1 per cent to 55.5 per cent. ADR grew 10.4 per cent to $108.85 and RevPAR rose 5.8 per cent to $60.46.

Staff Report

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