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.For all the latest travel news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.