Supply outpacing demand and lack of events in February has led to the slight slump. (Image for representation purposes only)
Hotels in Abu Dhabi are set to post a decrease in room rates during February while occupancy levels were believed to have dropped, according to new figures.
STR Global’s preliminary February 2016 data indicates double-digit decrease in ADR and RevPAR when compared with the same month last year.
Based on daily data (collected so far) in February, Abu Dhabi reported a 4% increase in supply but a 1.7% drop in demand.
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The STR Global figures also showed that hotel occupancy rates in the UAE capital fell by 5.5% last month to 76.3% compared to the same month in 2015.
Average daily rates receded 28.5% to US $134.23 (AED 493.02) while an even bigger drop of 32.5% in revenue per available room to US $102.42 (AED 376.17) was also reported.
STR Global said in a statement: "Abu Dhabi’s February performance reflects the impact of events and conferences on the market’s hotels. In February 2015, the International Defence Exhibition and Conference (IDEX) boosted RevPAR 29.9%. For the first day of the conference last year, RevPAR was up 162% due to a 125.8% increase in ADR."
Additionally, STR analysts note that supply in Abu Dhabi continued to grow in February, while demand softened due to the lack of events."
Abu Dhabi will host next year’s IDEX from February 19-23, 2017.
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