Abu Dhabi hotel rates forecast to fall in January

Arabian Business staff writer, February 21st, 2016

Newly released figures by STR Global reveal decreases in Abu Dhabi room rates.

Hotels in Abu Dhabi are set to post decreases in room rates during January despite a rise in occupancy levels, according to new figures.

STR Global’s preliminary January 2016 data indicates decreases in average daily rates and revenue per available room when compared with the same month last year.

Based on daily data so far in January, Abu Dhabi reported a 4% increase in supply and only a 5.3% rise in demand.

The STR Global figures also showed that occupancy rates at hotels in the UAE capital rose by 1.3% last month to 75.5% compared to the same month in 2014.

Average daily rates dropped by 6.6% to $141 (AED520) while a 5.4% decrease in revenue per available room to $107 (AED392) was also reported.

STR Global said in a statement: "While a drop in ADR pushed year-over-year RevPAR comparisons into negative figures, STR Global analysts see lower rate in the market as an indicator of strong and growing occupancy levels.

"January occupancy was boosted in the beginning of the month by increased vacation travellers from Russia and other Commonwealth of Independent States. Abu Dhabi also hosted the World Future Energy Summit from January 18-21."