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Tue 14 Jun 2016 01:42 PM

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Abu Dhabi hotels set to see rates drop in May despite occupancy rise

New data from STR says occupancy expected to rise by 1.3%, boosted by the Isra and Mi'raj holiday

Abu Dhabi hotels set to see rates drop in May despite occupancy rise

Hotels in Abu Dhabi are set to report higher occupancy levels but lower rates in May, according to preliminary data released by STR.

Based on daily data from May, Abu Dhabi hotels registered a four percent increase in supply and a 5.3 percent rise in demand compared to the year-earlier period.

The STR data showd that occupancy rose by 1.3 percent to 74.4 percent for the month.

Figures also revealed a 4.1 percent decrease in average daily rate (ADR) to AED433.10 and a 2.9 percent drop in revenue per available room (RevPAR) to AED322.06.

STR said performance was helped by the Isra and Mi'raj holiday, which boosted Thursday May 5 occupancy to 95.4 percent and ADR to AED558.59.

It added that occupancy on Friday May 6 reached 86.8 percent, and ADR was AED529.86.

In April, real estate consultants JLL said an additional 3,300 hotel rooms are expected to enter the Abu Dhabi market by the end of 2016.

Most of these properties will be positioned in the 4 and 5 star categories, further skewing the market towards the upscale to luxury segment, it said.

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