Dubai: Hotels in Abu Dhabi and Dubai posted a subdued performance in January 2017 compared to a year earlier, with the overall average daily rates (ADR) dropping by 8 per cent, according to the latest data.
“Abu Dhabi reported a 1.5 per cent decline and Dubai posted nearly flat performance,” said market research firm STR on Thursday.
Smaller markets outside the city centres, however, were doing well in the beginning of the year.
In Fujairah, occupancy rates increased by 7.2 per cent while Ras Al Khaimah and Sharjah hotels registered higher occupancy levels, up by 10.1 per cent and 5.5 per cent, respectively.
Overall occupancy levels in UAE, however, increased marginally by 0.5 per cent to 81.1 per cent. The average daily rate dipped to Dh711.80, while the revenue per available room fell by 7.5 per cent to Dh577.09.
Hotels contacted by Gulf News had earlier said that while the UAE continues to attract a huge number of tourists, hoteliers are facing pressure from rising room supply. Visitors are also opting for more affordable properties, including the ones offered through Airbnb.
“Travellers visiting for business purpose have started choosing affordable business-oriented hotel apartments or short-term lease properties over staying at high-end resorts. Hence, resulting in generating lower ADR with high number of rooms,” said Mohammed Khoori, general manager for Golden Sands Apartments.
Across the Middle East, declines were likewise reported in key performance indicators, with overall occupancy dropping 2.7 per cent to 68.4 per cent, average daily rate falling 8.4 per cent to $177.81 and revenue per available room registering an 11 per cent decline to $121.62.
In Africa, occupancy levels went up 4.5 per cent to 50.6 per cent, while ADR and RevPAR posted increases of 12.5 per cent and 17.5 per cent, respectively.
