Abu Dhabi hotels experienced a rise in all major performance indicators in November driven by a number of prominent events and an increase in leisure demand, according to the latest HotStats survey.
November is historically the strongest month of the year for Abu Dhabi and this year was no different with hotels seeing further growth as occupancies reached 85.0 percent, an increase of 7.8 percentage points from the same period in 2012. Average Room Rates (ARR) experienced a slight revival with a 0.8 percent increase to US$ 246.74, becoming the second highest rates in the region. The strong growth in demand drove a 10.9% increase in Revenue Per Available Room (RevPAR) closing the month at US$209.71. The increase in ARR was led by a surge in demand from the leisure segment whilst occupancy levels benefitted from strong corporate activity and demand originating from city wide events. A rise in beverage and conferencing revenues helped to boost Total Revenue Per Available Room (TRevPAR) by 11.4% to US$ 387.55, which in turn, drove profitability up 11.7% to US$188.44, the highest level registered in 2013.
“Momentum has rapidly picked up in Abu Dhabi’s hotel market that has seen consistent growth in demand this year, particularly from the leisure segment. In year to date terms, occupancies are 10.9 percentage points higher than the same period in 2012 and have helped boost top line revenues which have filtered through to the bottom line, driving a 24.1% increase in profitability. The rise in performance witnessed during November was supported by the city hosting a number of prestigious events such as Abu Dhabi Art and the Abu Dhabi Grand Prix which according to preliminary figures, attracted over 55,000 visitors” commented Peter Goddard, Managing Director of TRI Hospitality Consulting Middle East.
Kuwait registered the highest top line growth across the five MENA markets surveyed by HotStats. ARR recovered from the particularly low base witnessed in November 2012 caused by political turmoil, soaring 36.8% to US$331.96. Furthermore, occupancies increased 3.8 percentage points to 62.5% driving RevPAR growth of 45.7% to US$207.44. As the market stabilised, a substantial increase in conferencing and banqueting revenues boosted TRevPAR levels 32.2% to US$432.19. The combined effects of a 5.3 percentage point decline in payroll costs coupled with a rise in operating profits drove Gross Operating Profit Per Available Room (GOPPAR) up by 67.8% to US$244.70.
“The Kuwaiti hotel market witnessed a rebound in performance during November from the low levels experienced during the same period last year, which were affected by ongoing political and civil protests. Average rates have since recovered, driven by a revival in corporate demand that was imperative in propelling rate growth, contributing over 50 percent of total room nights. Although leisure travellers continue to be the highest yielding segment, achieving rates of US$ 405.21, the proportion of demand from this segment has fallen by approximately 50% to 7.2 percent of total demand” commented Peter Goddard.
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