Emirate hotels show solid first quarter growth

Abu Dhabi is showing green shoots of growth as Dubai hotels maintain occupancy levels similar to last year according to the latest HotStats figures released by TRI Hospitality Consulting ME.

Four and five-star hotels in Abu Dhabi showed a 17.1% increase in RevPAR driven by 16.7% percentage point growth in occupancy from the previous year.

The UAE capital benefited from a string of high profile events – including the WTTC Global Summit, which featured high profile speakers including former US President Bill Clinton – which helped maintain occupancies close to 80% for the fourth consecutive month this year, reaching 78% in April.

Increasing competition in the market, however, put pressure on average room rates (ARR) at 7.7% US $144.57; although total revenue per available room grew 13.3%. Profitability levels were also robust as gross operating profit per available room (GOPPAR) grew 27.8% elevated by a 3% reduction in payroll costs.

While Abu Dhabi witnessed a substantial growth in demand in April, Dubai maintained comparable levels to last year, with slightly lower performance levels. RevPAR fell by 1.9% to US $321.75. However year-to-date performance levels remained strong with REvPAR growing 7.2% to US $325.40 driven by a growth in occupancy and ARR by 2.7 and 4% respectively.

Managing director, Peter Goddard commented: “Although the performance of hotel in Dubai was slightly lower in April, the Emirate continues to outperform 2012 with average occupancy reaching 88.2% for the first four months of the year.”