Dubai hotel occupancy fell 12.5 percentage points to 54.6% in July according to the latest HotStats report by TRI Hospitality Consulting Middle East.
Hotels in Abu Dhabi and Dubai saw profitability and revenue decline in July, according to the latest HotStats survey by TRI Hospitality Consulting Middle East.
Average room rates in Abu Dhabi fell 4.7% to US $105.82, resulting in negative RevPAR growth of 3.8%. The performance has been seen as a result of low demand in the summer, combined with the restriction on sales and consumption of food and liquor during Ramadan.
Occupancy in Abu Dhabi grew 0.5 percentage points to 50.1% due to offers such as SummerFest Abu Dhabi, which helped relieve the decline in occupancy that is common during the summer. Abu Dhabi was only market in the report to see negative profitability levels, which fell from marginal levels in 2012 due to the high operating costs in the UAE capital.
| Advertisement |
In Dubai, occupancy fell 12.5 percentage points to 54.6%, resulting in a reduction of 16.8% in RevPAR despite ARR rising 2.2% to $196.87.
Room revenue and food and beverage revenues at Dubai hotels also fell, leaving TrevPAR at $242.98, down 10.7 percent from the previous year. Profitability declined by 63.6% to $37.35 despite an 8.1% reduction in payroll expenses.
TRI Hospitality Consulting Middle East managing director Peter Goddard said: “As expected, Dubai has seen performance reach the lowest point of the year in absolute terms. This naturally resulted from a lack of events, coupled with the fact that this month is traditionally characterised by low demand. As Ramadan moved earlier into July, occupancies reached the lowest level seen in two years. On the other hand, occupancy levels in Abu Dhabi grew 0.5%, amplified by the success of SummerFest Abu Dhabi, which targeted GCC nationals and local residents.”
Search our database of more than 2,700 industry companies
