The Abu Dhabi hotel market continued to grow from strength to strength, as strong top-line performance elevated profitability levels in the first six months of 2014, according to the latest HotStats survey of full service hotels in five MENA cities commented on by TRI Hospitality Consulting Middle East.
Increasing demand raised occupancy levels by 4.9 percentage points to 78.2%, drove revenue per available room (RevPAR) up by 6.8%, while average room rates (ARR) remained stable in the first half of 2014. In the month of June, ARR and occupancy increased by 4.8 percentage points and 3.7% respectively, prompting RevPAR to rise 11.4% to US$85.25. Higher contribution of non-rooms revenues, particularly from conferencing activities, boosted total revenue per available room (TRevPAR) by 9.0% to US$200.96 and pushed the bottom-line profits up 31.3% to US$31.39 during the month.
“Occupancy growth allowed hoteliers to maintain steady average rates during the first six months of the year, as the market showed signs of stabilisation. ARR have increased for four consecutive months while occupancies have seen a consistent upward trend for nearly two years. Demand growth within the hotel market coincided with the strong performance of Etihad Airlines during the period, as the national carrier saw passengers rise by 22% from the previous year” commented Peter Goddard, Managing Director of TRI Hospitality Consulting in Dubai.
Corporate and conference demand drives TRevPAR growth in Jeddah
Jeddah hotels saw average room rates surge 15.5% to US$305.92 in June, reaching the highest level amongst MENA hotels surveyed by HotStats. Despite occupancies declining 3.1 percentage points to 82.3%, ARR drove RevPAR growth of 11.3% to US$251.71. High corporate and MICE demand caused double-digit growth in F&B and conferencing revenues, which elevated TRevPAR levels to US$386.95. Payroll costs and operating expenses fell 1.6 percentage points and 2.0% respectively, further growing the bottom-line performance, as gross operating profit per available room (GOPPAR) rose by 18.0% to US$204.44.
“Hotels in Jeddah historically record strong revenues in June, however, performance was particularly robust this year, as corporate and conferencing segments drove double-digit growth in average rates, with the two segments contributing to 56% of demand for the city’s hotels. The hosting of regional events also generated higher dining and conferencing revenues, which helped to boost profits by 18.0%.” commented Goddard.
Doha hotels record a 20.8% surge in RevPAR in June
Doha experienced an 11.4 percentage point growth in occupancy to 75.9% in the first six months of the year, pushing RevPAR up by 11.5% to US$166.66 despite ARR declining 5.3%. F&B activities generated 45.8% of hotel revenues, which is a high contribution relative to other regional markets.
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