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Mon 9 Aug 2010 01:30 PM

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Abu Dhabi hotels show biggest losses in the region

Hotels in UAE capital saw revenue per available room more than halve.

Abu Dhabi hotels show biggest losses in the region
TOP HOTEL: Hotels in the capital city saw revenue per available room (revPAR) more than halve. (Getty Images - for illustrative purposes only)

Abu Dhabi hotels notched up the biggest falls in revenue in the region in the month of June, according to a review of key cities in the Middle East.

Hotels in the capital city saw revenue per available room (revPAR) more than halve, said a report by US hospitality research firm STR Global and Deloitte & Touche Middle East, the sharpest decline in the region.

RevPAR dropped to $121.91 for June 2010, down from $245.08 a year earlier, triggered by an influx of new rooms and the slow summer season. Occupancy levels mirrored the decline showing, at 56.9 percent, a 26.6 percent drop for the month.  

Oman hotels followed Abu Dhabi’s lead. Resorts in Muscat, Oman’s capital city and tourism hub, saw a 17 percent plunge in revPAR to the end of June 2010, compared with the same period a year earlier.

Occupancy levels, however, showed a slight rise, up 0.5 percent to 57.8 percent for the period.

Dubai, the Gulf’s trade and tourism hub, also saw a drop in revPAR levels, with room rates down 3.5 percent to $166.16 in June. Occupancy remained strong at 73.1 percent, showing a six percent rise on the same period a year earlier, as tourism figures continue to bounce back from last year’s slump.

The rise, noted the report, “can be attributed to the increase in marketing and promotion efforts undertaken by the city’s hotels.”

Lebanon’s key tourism destination, Beirut, was the top performer in revPAR terms, posting a 28.40 percent rise to $149.79. The spike “implies better hotel management practices and growing profits for the hospitality and tourism industry in Lebanon,” analysts said.

Occupancy showed a slight decline, down to 66.8 percent from 67.30 percent in 2009.

The Saudi Red Sea city of Jeddah followed Beirut’s lead with a rise in revPAR for the month. Room revenues stood at a steady $124.65 for the month, up from $114.25, while occupancy showed a small, two percent rise on the year, to 66.9 percent.

Hotels in the city continue to benefit from business growth and limited hotel supply, the report said.

Despite varying results, the Middle East continued to rank top worldwide in revPAR terms, with a rate of $91.83 for the month of June. Europe took the second spot, with $90.93, with the Asia Pacific and the Americans ranking third and fourth, with $77.83 and $65.11 respectively.

Occupancy across the region dropped by 1.9 percent to 62.4 percent, a decline attributed to new hotel stock entering the market.

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