Latest figures show a fall in both rates and occupancy across Abu Dhabi properties in the month of December.
Hotel occupancy levels and average daily rates dropped in Abu Dhabi’s hotels in December, pushed down by a rise in supply, according to a local news source.
Occupancy in the emirate declined 2.8% year-on-year in December, falling to 76%, while ADR dropped 6.8% to US$148 (AED546.18).
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“Year to date, demand has outpaced supply in the market, although supply has outpaced demand over the last two months. Considering Abu Dhabi’s exceptional demand growth rates (which over a three-year period peaked at 33.4% in August 2013), STR Global analysts expected this trend would eventually wear off after supply caught up with demand,” STR Global said in a statement.
Revenue per available room fell 9.4% to $113 (AED415.35), and while supply outpaced demand last month, growing by 4.4%, demand did increase by 1.5%.
There are currently 5,200 hotel rooms in the Abu Dhabi pipeline for 2017, according to a report by real estate consultancy JLL.
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