Abu Dhabi records surge in hotel occupancy in Nov
By Staff Report
Published: Fri 19 Jan 2018, 7:58 PM
Last updated: Fri 19 Jan 2018, 10:03 PM
Hotels across Abu Dhabi witnessed an increase in occupancy by six per cent points from 82.6 per cent in November 2016 to 88.6 per cent in November 2017, new data from EY showed.
The increase can be attributed to the opening of the Louvre Abu Dhabi on Saadiyat Island, as well as the Formula 1 races that took place in November. The Abu Dhabi hospitality market also saw an increase in revenue per available room (RevPAR) by 2.9 per cent from $146 in November 2016 to $150 in November 2017. However, there was a slight decrease in the average daily rate (ADR) by 4.1 per cent from $176 in November 2016 to $169 in November 2017.
Dubai's hospitality market, on the other hand, witnessed a decrease across all key performance indicators (KPIs) when compared to the same period last year. There was a slight drop in occupancy by 1.3 per cent points in November 2017, when compared to the November 2016. This, coupled with a decrease in average room rate by 1.4 per cent from $290 in November 2016 to $286 in November 2017 led to a 2.8 per cent drop in RevPAR from $259 in November 2016 to $252 in November 2017.
While Dubai witnessed an increase in tourist arrivals owing to the cool climate and events such as the Dubai Airshow and Motor Show, the decline in KPI performance may be attributed to the increased supply of hotel rooms in the city.
"Overall, the internationally branded four and five star hotels of the Middle East hospitality market witnessed a slight decrease in KPI's in November 2017, when compared to the same period last year. In the GCC, all markets except Kuwait and Muscat recorded lower RevPAR, reflecting the slowdown in performance witnessed across the wider Mena region. However, Cairo's hospitality market saw the highest increase in occupancy, ADR, and RevPAR for November 2017," said Yousef Wahbah, Mena real estate, hospitality and construction sector leader at EY.
According to the November 2017 Mena Hotel Benchmark Survey Report, the Mena hospitality market is expected to continue the same trend until the end of the year. In the GCC region, the hospitality market can expect some improvements across select cities over the next few months due to better weather conditions as well as the shopping attractions and events such as the Dubai Shopping Festival. - firstname.lastname@example.org