Room rates and revenues continued to fall at hotels in the UAE during August despite solid demand from tourists, according to latest data from analysts STR.STR said hotel demand remains solid at 4.8 percent growth for the year to date but significant supply growth (5.1 percent) continues to pressure occupancy levels and pricing power.Occupancy in August fell 5.9 percent in the UAE to 68.4 percent while average daily rates (ADR) dropped 8.3 percent to AED422.77, the data showed.It added that revenue per available room (RevPAR) slumped 13.7 percent to AED289.27 last month.STR analysts said that at the market level, both Dubai (down by 14 percent) and Abu Dhabi (down by 11.9 percent) reported RevPAR declines, due primarily to lower rates.They added that hotels in the wider Middle East region reported mixed performance results during August.Occupancy was down 3.9 percent to 62.1 percent while ADR rose by 7.4 percent to $151.04 and RevPAR increased by 3.2 percent to $93.84.
Follow us on
