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Mon 15 Oct 2018 02:52 PM

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Abu Dhabi hotels set to see occupancy, room rate declines in September

STR's preliminary September data for the UAE capital indicates supply outpacing demand

Abu Dhabi hotels set to see occupancy, room rate declines in September
Hotels in Abu Dhabi saw declines in all performance indicators during September.

Hotels in Abu Dhabi saw declines in all performance indicators during September as the Eid Al Adha holiday fell earlier than a year earlier, according to analysts STR.

STR’s preliminary September data for the UAE capital indicated supply outpacing demand.

Based on daily data from September, Abu Dhabi reported a 5.1 percent increase in supply against a 2.6 percent drop in demand.

The figures showed that occupancy at hotels in Abu Dhabi fell by more than 7 percent to 67.4 percent last month.

STR added that average daily rate (ADR) fell by 1.9 percent to AED339.02 while revenue per available room (RevPAR) slumped by 9.1 percent to AED228.45.

STR analysts noted that year-over-year performance comparisons for September were negatively affected by an earlier Eid Al Adha in 2018.

The figures follow an announcement last week by the Department of Culture and Tourism - Abu Dhabi (DCT Abu Dhabi) that it is making improvements to its hotel classification system.

The move is part of plans to develop the emirate as a world-class destination, it said, adding that the new system will offer a key guest benefit by focusing more directly on service delivery.

This emphasis on guest satisfaction is reflected in the incorporation of a new Guest Experience Index as well as allowing for ‘mystery shopper’ audits in cases of underperformance.

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