Abu Dhabi hotels set to see biggest September rates drop in 11 years

Preliminary STR data shows declines in occupancy, rates and revenue for hotels in the UAE capital
Abu Dhabi hotels set to see biggest September rates drop in 11 years
By Staff writer
Mon 17 Oct 2016 01:57 PM

Hotels in Abu Dhabi are forecast to see declines in occupancy, rates and revenue during September, according to preliminary data from analysts STR.

Based on daily data from September, Abu Dhabi reported a 3.9 percent increase in supply but a decrease in demand by 3 percent.

STR figures also showed a 6.7 percent decrease in occupancy for September to 68.9 percent and a 6.4 percent decrease in average daily rate (ADR) to AED400.50.

Hotels in Abu Dhabi are set to see a 12.6 percent decrease in revenue per available room (RevPAR) to AED275.80, STR added.

The absolute ADR level would be the lowest for a September in Abu Dhabi since 2005, the figures showed while at the same time, ADR in the market increased from last month (AED348.61 in August).

STR analysts attributed the market’s overall performance declines to supply growth substantially outpacing demand.

Separately, STR’s September 2016 Pipeline Report showed 159,127 rooms in 555 projects under contract in the Middle East.

The total in the Middle East represents a 14.8 percent increase compared to September 2015.

The data also showed that Saudi Arabia reported the most rooms in construction with 36,545 rooms in 78 hotels, followed by the UAE with 26,552 rooms in 94 hotels while Qatar reported 7,889 rooms in 33 hotels.

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