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.

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.”