Revenue per available room (RevPAR) was found to have declined in both Dubai and Abu Dhabi
Hotel demand in the UAE outpaced supply growth in the first quarter of 2018, according to new data from STR.
According to the data, demand for hotels rose 5.2 percent in Q1, compared to a 4 percent growth in supply growth, leading to an increase in occupancy while mitigating the supply impact on rate levels.
Overall, occupancy was found to have gone up 1.1 percent to 83.4 percent in the UAE during the quarter, while revenue per available room (RevPAR) declined 2.3 percent, to AED 556.12.
RevPAR in Abu Dhabi was found to have had a slightly steeper decline of 4 percent, compared to Dubai where RevPar fell 2.6 percent.
Average daily rates were found to have also declined, by 3.4 percent, to AED 666.4.
STR noted that the supply growth impact is more substantial in Abu Dhabi ahead of Expo 2020, while Abu Dhabi is looking to diversify its economy and focus more on the development of its tourism sector.
Overall, hotel occupancy in the Middle East and Africa rose 0.9 percent to 70.6 percent, while average daily rates fell 4.5 percent to $163.76.
Revenue per available room was found to have fell 3.7 percent to $115.62.