Font Size

- Aa +

Wed 2 Sep 2015 03:24 PM

Font Size

- Aa +

UAE hotels see occupancy, rates rebound as Ramadan ends

New data shows hotels in Abu Dhabi and Dubai witness rises across key measurements during July

UAE hotels see occupancy, rates rebound as Ramadan ends
(AFP/Getty Images)

UAE hotels witnessed strengthening occupancy in July following the traditional slump experienced during the holy month of Ramadan, according to a new report.

Abu Dhabi hotels reported a 27.2 percent growth in revenue per available room (RevPAR) to $73.01 in July, driven by a 10.5 percent rise in occupancy levels to 60.8 percent.

Figures from hospitality data firm Hotstats also said that the improvement in RevPAR could be attributed to an average room rate (ARR) growth of 5.2 percent to $120.05 in the UAE capital.

The rise in room revenues helped offset the decline in food and beverage sales during the month and translated to a 19.9 percent increase in total revenue per available room (TRevPAR).

A growth in overall revenue helped hotels in the city increase gross operating profit per available room (GOPPAR) to $11.40, the report added.

Four and five star hotels in Dubai experienced a significant increase in performance levels in July compared to the same period last year, as Ramadan was split between July and June this year.

Despite a marginal decline in ARR by 1.1 percent to $200.77, hoteliers in the city were able to capitalise on higher demand levels as occupancy grew by 9.9 percent to 60.2 percent.

As a result, RevPAR recorded a double digit growth of 18.3 percent although TRevPAR was partially weighed down by softer food and beverage demand.

Nonetheless, the increase in room revenues coupled with an 8.7 percent reduction in operating costs drove a significant rise in bottom line performance as GOPPAR grew from $0.07 to $36.52.

The HotStats report also showed that luxury hotels in Doha continued to benefit from the strengthening demand in the city's hotel market.

Occupancy levels rose 2.7 percent to 49.8 percent in July, fuelling a marginal 1.5 percent increase in ARR to $199.76 and subsequent 7.3 percent rise in RevPAR.

A stronger food and beverage demand boosted TRevPAR which grew 11.9 percent to $238.43. The increase in total revenues had a direct flow through to the bottom line with GOPPAR increasing 10 percent to $56.67.

Jeddah hotels witnessed a 6.5 percent increase in occupancy to 80.9 percent in July, allowing hoteliers to yield a 3.5 percent rise in ARR to $315.00 driving a 12.5 percent growth in RevPAR to $254.67.

Softer food and beverage revenues had an impact on TRevPAR performance, but it was still 2.7 percent higher than last year. Despite a minimal increase in operating expenses, the profitability of Jeddah hotels mimicked the growth in RevPAR with GOPPAR expanding 2.8 percent to $197.00.

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.