New industry report says increasing occupancy is driving performance in UAE capital
Hotels in Abu Dhabi capitalised on increasing occupancy numbers in February, lifting profits 72.9 percent compared to the same month last year, according to the latest latest HotStats survey by TRI Hospitality Consulting.
Tourists flocked to the capital for a number of conferences including the International Defence Exhibition (IDEX) which attracted some 10,000 international visitors, the survey said.
Hotels in Abu Dhabi saw a 10 percent growth in average room rates to $203.30, which, coupled with the 18.6 percent increase in occupancy to 80.8 percent resulted in a 43 percent increase in revenue per available room (RevPAR) to $164.20.
The survey also said that conference-driven demand boosted total revenue per available room (TRevPAR) 36.4 percent to $323.95, growing gross operating profit per available room (GOPPAR) 72.9 percent to $126.21.
"A number of conferences held in Abu Dhabi have helped boost occupancy across hotels lifting performance indicators to record numbers in the past year, as operators strive to monetize steadily increasing demand," said Peter Goddard, managing director at TRI Hospitality Consulting in Dubai.
The survey also showed that hotels in Dubai continued to outperform regional counterparts during February.
Hotels in Dubai saw occupancy rise 5.3 percent to 90.1 percent while maintaining the highest average room rate (ARR) in the region at $334.79, and RevPAR grew 10.3 percent to $301.70.
An increase in leisure demand in the city grew food and beverage revenues 9.3 percent and 9.5 percent respectively, boosting TRevPAR 11 percent to $523.86.
Goddard said: "Dubai continues to be the star player in the regionas 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."
TRI Hospitality data showed hotels in Jeddah registered growths across performance indicators despite a 1.3 percent fall in occupancy to 78.2 percent.
ARR grew 11.2 percent to $237.37 allowing a 9.4 percent increase in RevPAR to $185.69, the figures for February showed.
Riyadh's hotel performances remained stable when compared with last year performances in spite of a small increment in occupancy.
ARR witnessed a 3.3 percent decline to $250.48. RevPAR across surveyed properties increased 0.8 percent to $185.97, and TRevPAR grew 1.5 percent to $299.39.
In Kuwait, hotels registered a 6.4 percent increase in occupancy to 60 percent as a slight dip in conference demand was masked by an increase in both corporate and leisure demand.
ARR increased 7.5 percent to $273.92 lifting RevPAR 20.4 percent to $164.27. The Hala February festival, which catalysed domestic tourism, also aided a 46.6 percent increase in F&B revenues while TRevPAR grew 23.8 percent to $350.43, boosting bottom line revenues 34.9 percent to $161.97.