Abu Dhabi hotels report slump in revenue

Posted under News.
by Sophia Soltani | Published 5 years ago

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According to STR Global’s  preliminary February 2016 data, hotels in Abu Dhabi are set to host large double-digit decreases in average daily rates and revenue per available room when compared with the same month last year. Capture

Based on daily data so far in February, Abu Dhabi reported a 4%  increase in supply but a 1.7% drop in demand. The STR Global figures also showed that occupancy rates at hotels in the UAE capital fell by 5.5% last month to 76.3% compared to the same month in 2015.

Average daily rates fell by 28.5% to AED 493.02 while an even bigger drop of 32.5% in revenue per available room to AED376.17 was also reported. In a statement accompanying the data, STR Global said: “Abu Dhabi’s February performance reflects the impact of events and conferences on the market’s hotels. In February 2015, the International Defence Exhibition and Conference (IDEX) boosted RevPAR 29.9%. For the first day of the conference last year, RevPAR was up 162% due to a 125.8% increase in ADR.Additionally, STR analysts note that supply in Abu Dhabi continued to grow in February, while demand softened due to a lack of events.”

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