By Staff writer
New EY report says revenue per available room in Dubai slumps by 7% despite city boasting best occupancy rate in region
Hotels in Dubai recorded the highest occupancy rates in the Middle East last month but revenues continued to slide, according to a new report by EY.
Dubai hotels registered average occupancy on 86 percent in May, ahead of Abu Dhabi (81 percent) and Ras Al Khaimah (74.2 percent).
But while occupancy rates remained high in both Dubai and Abu Dhabi, their hospitality markets witnessed a decrease in revenue per available room (RevPAR) of 7 and 8.9 percent respectively in May.
EY said this was mainly due to the drop in average daily rates in both cities. Conversely, RAK and Jeddah recorded positive increases in RevPAR, when compared to the same period last year.
Commenting on the May Middle East Hotel Benchmark Survey, Yousef Wahbah, MENA head of transaction real estate at EY said: “Middle East hotel performance was mixed in the month of May.
"GCC hotels emerged as the highest performers in terms of occupancy in May, with hotels in the UAE and Jeddah recording the highest May occupancy rates in the Middle East this year."
He said that overall, the Middle East hospitality markets are weathering the economic conditions quite well.
"The favourable weather, regional business conferences and leisure destinations across the region continue to attract tourists into the Middle East,” said Wahbah.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.