Abu Dhabi hotel revenues drop 10% in November despite Grand Prix

Hotel occupancy levels in the emirate also declined last month, says STR
Abu Dhabi hotel revenues drop 10% in November despite Grand Prix
By Staff writer
Thu 22 Dec 2016 01:01 PM

Average daily rates for hotels in Abu Dhabi fell 10.6 percent in November compared to the same period last year – despite a four-day boost from the Formula 1 Grand Prix, new data reveals.

In its latest report, hospitality analyst firm STR said occupancy levels in Abu Dhabi hotels also declined last month due to an increase in supply.

Occupancy levels across the emirate fell 3.2 percent year-on-year to 81 percent while average daily rate (ADR) declined 10.6 percent to $179.76 (AED659.73), pushing revenue per available room (RevPAR) down by 13.5 percent to $145.53 (AED534.11), according to the research.

Despite November being a traditionally “strong” month, the report said a 3.5 percent increase in room supply in the year to date impacted performance.

It noted that hotels did report “brisk” business during the four-day Formula 1 Abu Dhabi Grand Prix, which drove the ADR to $272.48 (AED1,000). However, this failed substantially improve the monthly performance from last year.

STR said hotels in the Middle East reported mixed results in November, but hotels in Africa posted positive results.

Compared with November 2015, the Middle East recorded a 3.1 percent increase in occupancy levels to 71.3 percent, but registered a 7.7 percent drop in ADR to $182.60. This pulled RevPAR down by 4.8 percent to $130.27, the report said.

Africa experienced a 1.2 percent increase in occupancy to 59.9 percent, coupled with an 18.6 percent spike in ADR to $118.59, which pushed RevPAR up by 20 percent to $71.01, the report said.

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