Dubai’s four and five star hotels maintained strong performance levels during the month of December with revenue per available room (RevPAR) increasing by 2.2% to US$308.26, according to the latest HotStats data. The growth in rooms revenue was driven by a marginal growth in average room rate (ARR) which rose by 0.4% to US$375.11, coupled with a 1.4 percentage point increase in occupancy to 82.2%. Higher F&B and conferencing revenues drove a 3.5% increase in total revenue per available room (TRevPAR) to US$573.30 and supported profitability, as gross operating profit per available room (GOPPAR) increased by 4.0% to US$286.33.
“Dubai hotels closed 2014 with strong occupancy and average room rates in December which saw overall performance levels exceed those achieved in 2013. This increase was driven by a 2.0% increase in ARR, however the market witnessed a marginal decline in occupancy by 0.2 percentage points to close the year at 80.0%. Although the market has been facing challenges with geopolitical issues in Eastern Europe and the revival of Egypt’s tourism industry, Dubai continues to steam ahead in attracting an increasing number of visitors as seen with Dubai International Airport toppling London Heathrow for the top spot in international passenger traffic with 70.4 million passengers passing through the airport in 2014”, commented Christopher Hewett, Senior Consultant at TRI Consulting in Dubai.
2014 ‘the year of rebound’ for Abu Dhabi hotels
Abu Dhabi hotels recorded an impressive 10.1 percentage point increase in occupancy levels reaching 83.1% in December, driving a 22.8% growth in RevPAR to US$141.55. The strong demand levels allowed hoteliers to command healthier ARR, which grew by 7.9% to US$170.37.
The growth in rooms revenue was offset by a reduction in food and beverage revenues which fell by 4.4% and 2.4% respectively during the month; however, TRevPAR performance remained strong, up by 15.8% to US$301.25.
‘‘The Abu Dhabi hotel market achieved strong performance levels across the board in 2014, as hotels benefitted from a 4.6 percentage point rise in occupancy levels on the back of increased tourist numbers. After facing years of oversupply, average rates rebounded during the year with the market breaching threshold required to see average rates increase by 0.8% over 2013. The rise in demand, which was particularly prevalent during the second half of the year, was boosted by the continued promotional campaigns undertaken by the Abu Dhabi Tourism and Culture Authority. The capital was able to capture increased leisure demand during peak season due to its dynamic entertainment offering which was enhanced by the opening of the Yas Mall” commented Hewett.
Doha hotels witness double-digit growth in TRevPAR
Hotels in Doha continued to see rooms revenue rise for the eighth consecutive month in December with occupancy levels increasing by 11.2 percentage points to 71.5% while ARR grew by 4.9% to US$232.08.
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