By Staff writer
Average rates and revenue per available room in UAE capital set to slump by 28.5% and 32.5% in February
Hotels in Abu Dhabi are set to post huge decreases in room rates during February while occupancy levels are also forecast to drop, according to new figures.
STR Global’s preliminary February 2016 data indicates 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 percent increase in supply but a 1.7 percent drop in demand.
The STR Global figures also showed that occupancy rates at hotels in the UAE capital fell by 5.5 percent last month to 76.3 percent compared to the same month in 2015.
Average daily rates slumped by 28.5 percent to AED493.02 while an even bigger drop of 32.5 percent in revenue per available room to AED376.17 was also reported.
STR Global said in a statement: "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 percent. For the first day of the conference last year, RevPAR was up 162 percent due to a 125.8 percent 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."
Abu Dhabi will host next year’s IDEX from February 19-23 2017.