By Staff writer
HotStats report says both RevPAR and average rooms rates show double digit declines
Four- and five-star hotels in Dubai reported weakening performance levels in August, with revenue per available room (RevPAR) declining 10.1 percent to $147.45 for the month compared to the same period last year, according to a new report.
Figures from hospitality data firm Hotstats said that due to a marginal rise in occupancy levels by 0.6 percent, the contraction in room revenues was led largely by average room rates (ARR) falling 10.8 percent to $196.49.
The drop in room revenues also impacted total revenue per available room (TRevPAR) which fell 10.6 percent to $271.01, the report said.
It added that profitability levels remained under pressure as key operating expenses rose, causing gross operating profit per available room (GOPPAR) to drop by 9.8 percent to $69.10.
The report said hotels in Doha also witnessed weakening performance metrics in August as RevPAR declined by 11.1 percent to $111.14, as soft demand forced hoteliers to drop rates in order to maintain market share.
ARR fell by 11.7 percent to $190.04, while occupancy increased by a marginal 0.3 percent to 58.5 percent. A surge in F&B revenues helped offset the lower room revenues but failed to escalate profits for hoteliers, with GOPPAR falling 17.7 percent to $80.64.
Hotel demand in Jeddah continued to flourish, as hotels reported a 4.5 percent increase in RevPAR for the month of August, compared to the same period last year, HotStats showed.
The surge in room revenues was driven by a 6.3 percent rise in occupancy levels, offsetting a 3.3 percent drop in ARR to $286.66 for the period.
The spike in hotel guests had a trickle-down effect on other hotel services, as F&B revenues increased, allowing TRevPAR to grow 5.6 percent. Complemented by a reduction in payroll expenses, profitability was boosted by the steady increase in top line revenues with GOPPAR growing by 8.8 percent to $177.47.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.