By Andy Sambidge
Latest data shows that occupancy rate improves by 6.6% while RevPAR jumps by 14%
The recovery of the Abu Dhabi hotel market continued to gain momentum with four and five star hotels reporting positive gains in performance levels in September, according to a new report.
Average room rate (ARR) increased by 4.2 percent to $128.96 while occupancy grew by 6.6 percent to 76.6 percent, resulting in revenue per available room (RevPAR) rising 14 percent to $98.76, said TRI Consulting in its monthly HotStats report.
Total revenue per available room (TRevPAR) was impacted by decline in beverage revenues of 5.3 percent but the strong room performance led to a 9.4 percent increase over the same period last year to $219.13, the report said.
The growth in RevPAR directly impacted gross operating profit per available room (GOPPAR) which increased by 42.4 percent to $47.73.
Peter Goddard, managing director of TRI Consulting, said: "Abu Dhabi's hotel market is going from strength to strength with a strong performance in September boosting year-to-date figures.
"The continual increase in occupancy levels to 74.2 percent up to September has allowed hoteliers to drive higher average room rates for the first time higher than 2013 levels. We project this upwards trajectory to continue as the city braces itself for the high season with notable events such as the Formula 1 Abu Dhabi Grand Prix and the opening of the much anticipated Yas Mall in November."
In Dubai, TRI Consulting said four and five star hotels in Dubai witnessed a mixed performance in September with occupancy levels growing 2.1 percent to 78.2 percent but ARR declined 3.2 percent to $231.36. As a result RevPAR reduced by 0.5 percent to $180.88.
The report said the contraction in Dubai room revenues did not materially impact the overall top-line performance as food and beverage revenues increased by five percent, boosting TRevPAR by 2.1 percent to $353.86.
"Dubai hotels showed a growth in occupancy levels in September as the market witnessed a return to business after the summer period. Although hotels recorded a 2.1 percentage point increase in occupancy, a rare decline in average rates directly impacted RevPAR levels for the month," said Goddard.
"Year-to-date figures indicate that hotels have managed to increase ARRs by 3.8 percent while occupancies have remained stable, which confirms the strength of the market particularly with the increase in hotel room supply witnessed during the year."