Mena hotels achieve positive start to the year

Dubai: Hotel occupancy in the region was at a good start in January and February this year.

According to a recent report by Ernst and Young, Dubai hotels saw overall occupancy levels climb to 89 per cent in January. In terms of monthly performance, overall occupancy was at 90 per cent, up 2.4 per cent. Rooms yield ratio (RevPAR) increased by 10.4 per cent, while average room rate was up 7.4 per cent.

“These increases can be attributed to the peak in tourism due to Dubai’s mild winter weather. In addition, the Dubai Shopping Festival occurs in January, which is a major tourism attraction. Dubai also hosts numerous conferences in January…[which] resulted in bringing many businessmen and women to the Emirate,” Yousef Wahbeh, Mena head of transaction-real estate at Ernst and Young said.

Meanwhile, in February, occupancy rose 5.3 per cent to achieve 90.1 per cent, according to the latest HotStats report. RevPAR was up 10.3 per cent to record $301.7, while Average Room Rate (ARR) stood at $334.79- the highest in the region. Also, total revenue per available room (TRevPAR) was 11 per cent to $523.86, boosted by the growth in the city’s food and beverage revenues by 9.3 per cent and 9.5 per cent. Additionally, Gross Operating Profits per Available Room (GOPPAR) increased by 12.7 per cent to $261.08, pushed by controlled payroll costs.

“Dubai continues to be the star player in the region, both corporate and leisure demands remain at their peak throughout the month of February. The city plays host to copious sporting events, conferences, and festivals which have resonated internationally thereby attracting record numbers of travellers yearly,” said Peter Goddard, managing director at TRI Hospitality Consulting in Dubai, which issued the report.

Overall occupancy in Abu Dhabi was at 78 per cent during January, highlighted the Ernst and Young report.

In February, the capital city saw occupancy levels up 18.6 per cent to 80.8 per cent, and average room rates went up 10 per, standing at $203.3, according to the HotStats report. These helped increase RevPAR by 43 per cent to $164.20. Also, conferences in the city boosted TRevPAR by 36.4 per cent to $323.95, raising GOPPAR by 72.9 per cent to $126.21. Additionally, hotel profits were up 72.9 per cent, standing at $126.21 this year from 2012.

Hotels in Al Ain, meanwhile, saw an increase in overall occupancy by 16 per cent in January, while RevPAR was up 13.1 per cent, indicated the Ernst and Young report. These rises are attributed to some of the city’s key attractions, such as Al Ain Zoo and Jebel Hafeet, a mountain.

In Manama, Bahrain, overall monthly occupancy was up 23 per cent in January.

Meanwhile, hotel occupancy in Saudi Arabia did not see major growth during February, indicated the HotStats report. Hotels in Jeddah saw a 1.3 per cent decline in occupancy to 78.2 per cent, while in Riyadh, occupancy was up 3 per cent to 74.3 per cent. In Kuwait, though, the situation was a little better. Hotels recorded a 6.4 per cent rise in occupancy to 60 per cent.

In Sharm El Shaikh, hotels saw occupancy levels go up 7.7 per cent to 56.8 per cent during the same month, helped by affordable package deals, political stability and good weather conditions. Also, in Cairo, occupancy was up 0.5 per cent to 42.5 per cent.

Sarah Algethami is a trainee at Gulf News