CBRE report says strengthening of domestic visitor numbers is becoming increasingly important in UAE capital
Abu Dhabi hoteliers are continuing to see downward pressure on occupancy, rates and revenues, according to a new report by real estate consultancy CBRE.
Its Q3 2017 Abu Dhabi MarketView report said that despite improvements in overall hotel guest numbers, the hospitality sector’s general performance indicators such as occupancy, average daily rates (ADR) and revenue per available room (RevPAR) all remain down.
CBRE said year to date occupancy rates to September equated to 69 percent, down 2.1 percent from the rate achieved in the year earlier period.
In the same period, ADR dropped by just over 8 percent from AED437 per room per night in September 2016 to AED400 per room per night a year later.
With declines recorded in both occupancy and ADR, the impact on RevPAR was accentuated, CBRE added, with rates falling by 10 percent from AED307 per room per night to AED275 per room per night.
Mat Green, head of Research & Consulting UAE, CBRE Middle East, said: “With demand from the corporate sector remaining muted, strengthening of domestic visitor numbers and further expansion of MICE initiatives have become increasingly important as hotels look to improve upon the current weakening revenue performances.”