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Mon 1 Feb 2016 08:05 AM

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Occupancy, rates down across Middle East hotels

Supply outpaced demand last year, growing 6.2% and 5.6% respectively

Occupancy, rates down across Middle East hotels

In Middle East hotels, occupancy dropped 2% year-on-year to 67.4% in 2015 while average daily rates (ADR) slipped 2.6% to $192.82, according to a new report.

Research firm STR Global said this resulted in revenue per available room (RevPAR) decreasing 4.6% to $129.98.

In December, occupancy declined 3.4% compared to December 2014 to 66.8%, and ADR decreased 4.1% to $204.27, causing RevPAR to fall 7.3% to $136.52.

In the UAE, occupancy declined 0.6% year-on-year in 2015 to 74.8% due to rising hotel room supply.

Saudi Arabia hotels saw occupancy drop 2.6% to 62.4%. However, ADR rose 3.6%s and RevPAR edged up 0.9% for the Kingdom.

In Manama, Bahrain, hotels saw occupancy decrease 7.6% to 51.5%, ADR grow 6% and RevPAR slip 2%.

Earlier this month, Deloitte's annual Real Estate Predictions Report for Dubai stated that rising competition among Dubai's hotel operators will bring a 'new norm' for occupancy rates in the city of between 70-75% in 2016.

This report also predicted that ADR will soften further during 2016 in order to entice visitors.

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