Abu Dhabi is one only a few major cities around the world to see a significant spike in hotel occupancy levels and revenues as a result of hosting a Formula One Grand Prix, according to research from Core Savills.
According to the analysis – entitled “urban impact of the Abu Dhabi Grand Prix” – hotels in Abu Dhabi see a spike of over 265 percent in room rates compared to their yearly average daily rates (ADR). Similarly, average occupancy and RevPAR surges throughout the month.
“As Abu Dhabi’s tourism offerings further diversify we expect to see hospitality rates across the city even out,” Core Savills CEO David Godchaux noted. “Given that Abu Dhabi presently holds one of the most competitive yearly ADRs but the 2nd highest rates during the Grand Prix, hotel prices are likely to flatten over the long-term.”
The report also notes that Abu Dhabi stands in stark contrast to other F1 host cities – such as Barcelona and Kuala Lampur – where the Grand Prix is held far from the city centre to accommodate the construction and logistics necessary. Other cities, such as Monaco and Singapore, hold the event on centrally-located, prime real estate.
In Abu Dhabi’s case, Yas Island is located at some distance from the city centre, but in a comparatively prime area.
“Abu Dhabi’s Grand Prix therefore poses a number of interesting potential drivers for real estate in the surrounding districts. Other large entertainment and leisure facilities located in the area include Yas Waterworld, Ferrari World, the Du Arena, Yas Marina and other flagship venues, which all work towards creating momentum in the area,” Godchaux said.
“This, in turn, is likely to strengthen the attractiveness of real estate in the surrounding areas by creating a sense of vibrancy and prestige, indicating the potential for government planning to create further value and generate greater demand,” he said.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.
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