By Staff writer
New STR data reveals 2.1% rise in occupancy but average daily rates slump by nearly 9%
Hotels in the UAE reported a 2.1 percent increase in occupancy to 73.4 percent in August but average daily room rates (ADR) continued to decline, according to new figures by analysts STR.
STR said in a statement that ADR slumped by 8.8 percent to AED463.51 while revenue per available room (RevPAR) also dropped by 6.8 percent to AED339.98.
Hotels in the UAE have seen year-to-date demand increase by 5.1 percent which has remained well ahead of last year’s pace, but supply - up 5.2 percent - continues to pressure rate in the region.
STR said ADR in the UAE has now decreased for 20 consecutive months in year-over-year comparisons.
The latest data also showed that Oman hotels saw a 3 percent rise in occupancy to 49.2 percent, but a 10 percent drop in ADR to OR57.65 dragged RevPAR down 7.3 percent to OR28.34.
STR analysts pointed to low oil prices as well as a third straight month of double-digit supply growth as a reason behind the overall decline. Oman has also reported a year-over-year decrease in ADR for 20 consecutive months.
STR also said hotels in Doha reported double-digit decreases in each of the metrics in August. Occupancy fell 11.2 percent to 54.4 percent; ADR was down 10.6 percent to QR353.71 and RevPAR dropped 20.6 percent to QR192.58.
Significant supply growth (up 12.1 percent year-to-date) coupled with a drop in demand of 7.5 percent and the oil crisis have led to 11 consecutive months of double-digit RevPAR decreases in Doha.
Regionally, STR said hotels in the Middle East reported mixed August results with a 2.3 percent rise in occupancy to 65.2 percent but ADR was down 5.4 percent to $141.89, and RevPAR fell 3.3 percent to $92.54.