Revenue, profit of Dubai hotels in July fall

Dubai: Occupancy rates of Dubai hotels dropped 4.6 per cent to 50.3 per cent year-on-year in July as overall demand in the emirate fell due to the hot weather and the impact of Ramadan, according to the latest HotStats survey, published by TRI Consulting.

While occupancy levels were down, average room rates (ARR) rose slightly by 1.1 per cent during the month to $202.94. As a result, revenue per available room (RevPAR- a performance benchmark) fell 7.4 per cent to $102.13. Food and beverage revenue also fell, which resulted in gross operating profit per available room (GOPPAR) to plummet 99.5 per cent to $0.07.

“Although performance was down in July, the overall market remains strong with year to date occupancy levels averaging 79.4 per cent and profit margins at 46.4 per cent,” stated Peter Goddard, Managing Director of TRI Consulting in Dubai.

Meanwhile in Abu Dhabi, ARR rose 5.1 per cent to $114.10, while RevPAR grew by 4.5 per cent to $57.36. Banqueting revenue grew too, which resulted in top-line revenue to increase by 2.5 per cent to $136.41.

“Although the hotels in Abu Dhabi recorded a trading loss during July, the market is witnessing encouraging indicators, especially with a revival in average rate performance. The market has suffered from a steady decline in average rates since August 2011, however this trend is starting to reverse with hotels undergoing a steady growth in average rates during the past five months, fuelled by strong regional visitor demand,” Goddard said.

Elsewhere in the region, Doha hotels saw occupancy rise 5.5 per cent to 47.6 per cent, leading RevPAR to grow by 13.8 per cent to $95.91.

In Cairo, hotels’ occupancy levels rose 8.7 per cent to 29.3 per cent, driven by higher demand, while RevPAR grew by 43.4 per cent to $33.64.