Abu Dhabi: Average daily room rates in Abu Dhabi’s hotels fell 5.4 per cent to Dh368 in July 2016 compared to July 2015, while occupancy levels rose 3.7 per cent year-on-year to 61.6 per cent.
According to the latest figures from STR, a data provider, revenue per available room (RevPAR) in Abu Dhabi recorded a 1.9 per cent decrease in July to Dh227. Demand managed to outpace supply, however, with demand up 7.9 per cent in the month compared to July 2015 as supply rose 4.1 per cent.
STR said in a statement that the Ramadan calendar shift between 2015 and 2016 led to significant variance in Abu Dhabi’s monthly performance figures for June and July. In 2015, Ramadan, which is typically a slow period for hotels, was June 18-July 17, whereas this year it was June 6-July 5. This meant the comparison was not exactly like-for-like.
“When shifting the comparison to the two Ramadan periods, 2016 resulted in a 14.3 per cent decrease in RevPAR. That decrease was driven equally by lower occupancy levels and lower [average daily rate],” STR said.
Hotels in Abu Dhabi have recently been reporting lower room rates and increased challenges as they face a tougher operating environment due to lower consumer and corporate spending.
In another report issued last week by STR, data showed that hotels in the overall GCC region saw a drop in profitability during the first half of this year. RevPAR of hotels in the region dropped 10.3 per cent year-on-year in the first six months of the year.
