Abu Dhabi: Average daily room rates across Abu Dhabi’s hospitality sector dropped eight per cent to Dh398 in the third quarter of 2015, while revenue per available room registered a five per cent decrease to Dh281 in the quarter.
According to the latest Market Mirror report issued by PKF Consulting House, occupancy rates across the emirate’s hotels averaged 70 per cent in Q3 2015, marking a two per cent increase from the same quarter in 2014.
Looking at new supply, Q3 witnessed the inauguration of one property, the 62-key Jannah Palace Abu Dhabi serviced apartments.
As for the retail sector, Abu Dhabi did not witness delivery of any retail projects during the third quarter of the year, the report pointed. According to a third party industry report, the retail supply in the emirate stood at 2.6 million square metres in Q3 2015, and is anticipated to increase by 164,000 square metres by the end of 2017.
Average lease rates across Abu Dhabi’s mall s remained stable, varying from Dh2,900 per square metre per annum for line stores to Dh825 per square metre per annum for anchor stores.
A new wave of retail space, which will enter the market in 2018 with the delivery of both Al Maryah Central and Reem Mall, will likely exert downward pressure on lease rates in older shopping centres.
