Dubai: Occupancy levels and average daily rates dropped in Abu Dhabi’s hotels in December, pushed down by a supply glut, according to a new report.
Occupancy declined 2.8 per cent year-on-year in December to 76 per cent, while ADR dropped 6.8 per cent to Dh546.18. Revenue per available room (RevPAR — an industry measure of occupancy and rates) fell 9.4 per cent to Dh415.35.
Supply outpaced demand last month, growing by 4.4 per cent. Demand edged up 1.5 per cent.
“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 per cent 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.
There are 5,200 hotel rooms in the Abu Dhabi pipeline for 2017, according to a report by real estate consultancy JLL.
