Hotels in Abu Dhabi posted a 31.3 percent growth in RevPar in August as demand was elevated by successful government-initiated tourism promotions, according to the latest HotStats survey of full service hotels in seven MENA cities by TRI Hospitality Consulting Middle East.
Average occupancy at four and five star chain hotels in the city reached 63.1 percent, growing by 12.4 percentage points, while Average Room Rates (ARR) increased to US$112.12, up by 5.5 percent compared to the same period last year. As a result, Revenue Per Available Room (RevPAR) for the month increased by 31.3 percent to US$70.74 while Total Revenue Per Available Room (TRevPAR) increased by 24.2 percent to US$159.00. However, the effect of a 7.7 percentage points decrease in payroll costs drove Gross Operating Profit Per Available Room (GOPPAR) up from the previous year to US$13.21.
“SummerFest Abu Dhabi is a summer promotion initiated by the Abu Dhabi Tourism and Culture Authority intended to increase the number of visitors from within the region. The authorities announced a five week extension on the Thrilling Stays hotel deal that offers entry to Yas Waterworld and Ferrari World on Yas Island. Over 40 hotels were involved in this family-orientated package that continued to raise the city’s profile as a regional leisure destination” commended Peter Goddard, Managing Director of TRI Hospitality Consulting in Dubai.
Hotels in Dubai saw positive performance as the city hosted a plethora of events and activities surrounding the Eid in Dubai campaign, in addition to the FINA World Junior Swimming Championships. The Eid Al Fitr weekend recorded stronger occupancy and average rates than those seen during the corresponding period of 2012 and elevated performance for the remainder of August. An 11.3 percent rise in ARR to US$228.99 coupled with an 8.5 percentage points rise in occupancy to 71.3 percent drove RevPAR up by 26.4 percent to $163.35 during the month. A 20.1 percent growth in TrevPAR drove a 98.3 percent increase in GOPPAR to US$ 70.63.
“Eid in Dubai marked the culmination of the second phase of the Summer is Dubai campaign that resulted in a substantial growth in visitor numbers, primarily driven by regional demand. The three day Eid holiday is traditionally the busiest weekend of the year, with GCC source markets contributing to the vast majority of foreign visitors driving the occupancy at four and five star hotels upwards of 90 percent. The overall growth witnessed throughout the city is also attributed to Dubai diversifying its entertainment offering to attract visitors through a vast array of shows and events” commented Goddard.
The Eid holidays also benefitted the Kuwait hotel market through increased leisure demand generated from domestic and Saudi visitors. Occupancy increased 3.4 percentage points 37.0 percent while ARR grew 12.0 percent to US$271.72, causing a 23.3 percent increase in RevPAR during the month. Despite low occupancy levels, average rates for the month of August exceeded year-to-date levels of US$269.48, illustrating the strength of the unofficial rate agreement on the market. Growth in food and beverage revenues resulted from increased expenditure of the Eid holidaymakers as well as the conclusion of the Holy Month of Ramadan. Coupled with a decline in payroll costs, the rise in revenues filtered through to the bottom line, with GOPPAR increasing 61 percent to US$86.54.
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