Dubai:
Average room rates in Abu Dhabi jumped nearly 18 per cent year-on-year in February to reach Dh577, marking the highest percentage change in the emirate for any month since February 2015.
According to preliminary figures issued by STR, a data provider, the rise in room rates was attributable to strong demand driven by IBTM Arabia (which took place in Abu Dhabi from February 6-8) and the International Defence Exhibition and Conference (Idex), held from February 19-23.
The increase in room rates drove revenue per available room up 18.1 per cent to Dh442. Occupancy rates were almost flat, however, on a year-on-year basis, inching up 0.1 per cent to 76.5 per cent.
STR data also showed demand levels were up 1.7 per cent, while supply rose 1.5 per cent.
The jump in performance indicators comes after decline in 2016, when average room rates at hotels in both Abu Dhabi and Dubai fell around 10 per cent amid lower demand, which was supported by a drop in consumer spending and slower economic growth.
Hotels in both cities have also been facing challenges on the back of a stronger US dollar (to which the UAE dirham is pegged), making both cities pricier to visitors from key markets like Europe and the UK.
