Rates and revenues in UAE capital remain under pressure as new hotel supply outstrips demand - STR
Occupancy and room rates in Abu Dhabi remained under pressure during August as new hotel supply outstripped demand, according to analysts STR.
STR’s preliminary August 2017 data for the UAE capital indicated performance declines consistent with significant supply growth.
Based on daily data from August, Abu Dhabi reported a 3.7 percent increase in supply against demand growth of just 0.2 percent.
Occupancy fell by 3.4 percent to 65.1 percent while average daily rates (ADR) dropped by 8.5 percent to AED317.94 and revenue per available room (RevPAR) slumped by 11.7 percent to AED206.95.
STR analysts pointed out that the number of roomnights sold (demand) in the market increased slightly from last August. However, supply growth outpacing demand is placing pressure on occupancy, and subsequently, ADR levels.