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Tue 14 Jan 2020 02:08 PM

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F1 impact on Abu Dhabi hotel rates revealed

Abu Dhabi hoteliers felt the benefit of the Formula 1 Grand Prix in December at it drove huge increases in average room rates and room revenues

F1 impact on Abu Dhabi hotel rates revealed
F1 world champion Lewis Hamilton.

Abu Dhabi hoteliers felt the benefit of the Formula 1 Grand Prix in December as the sporting event drove huge increases in average room rates and room revenues.

According to STR’s preliminary December data for the UAE capital indicated strong room rates despite weakened demand.

Although supply remained flat year over year, the slight decline in demand pushed occupancy down for the month.

STR analysts noted that performance growth was especially pronounced at the beginning of the month, which coincided with the last day of the Grand Prix (December 1), which produced heightened performance growth in occupancy (up by 20.9 percent) compared to the same period in 2018.

Average daily rates (ADR) also soared by 203.1 percent while revenue per available room (RevPAR) rocketed by 266.5 percent.

Based on daily data from December, Abu Dhabi reported flat supply against a 0.5 percent dip in demand.

Occupancy for December fell marginally by 0.6 percent to 77.1 percent while ADR rose by 6.4 percent to AED509.10 and RevPAR increased by 5.8 percent to AED392.64.

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