Dubai: Dubai hotels’ occupancy edged up 2.1 per cent year-on-year in September to 78.2 per cent. However, average room rates (ARR) declined 3.2 per cent to $231.36, according to a new HotStats survey published by TRI Consulting on Tuesday.
The slight increase in occupancy and marginal drop in ARR resulted in revenue per available room (RevPAR- an industry benchmark for performance) to edge down 0.5 per cent to $180.88. But total gross operating profit (GOPPAR) rose 8.3 per cent to $111.58, helped by a drop in some operational expenses of hotels.
However, year-to-September, Dubai hotels recorded an occupancy rate of 78.7 per cent and an ARR of $316.77, up 3.8 per cent compared to the same period in 2013. As a result, RevPAR reached $249.20.
“Dubai hotels showed a growth in occupancy levels in September as the market witnessed a return to business after the summer period,” stated Peter Goddard, Managing Director of TRI Consulting.
Philip Wooller, area director for the Middle East and Africa at research firm STR Global, anticipates a “softening” of occupancy rates in Dubai by year-end, with the entry of hotel room supply in the market. He expects occupancy to decline by “2-3 per cent” and ARR by “1-2 per cent” in the next two months.
“Although demand is pretty good [in Dubai], it is not keeping pace with new supply,” he said.
A number of hotels opened in the emirate this year, such as Sofitel Dubai Downtown and Waldorf Astoria Dubai Palm Jumeirah. The Four Seasons Resort Dubai and Sheraton Grand Hotel Dubai are expected to open in November.
While room revenue declined in the emirate last month, food and beverage revenue grew by 5 per cent, boosting total revenue per available room (TRevPAR) by 2.1 per cent to $353.86.
Hotel performance was stronger in Abu Dhabi during September. Occupancy rose 6.6 per cent to 76.6 per cent, while ARR grew by 4.2 per cent to $128.96. That led RevPAR to jump 14 per cent to $98.76, which increased GOPPAR by 42.4 per cent to $47.73.
On the other hand, Abu Dhabi’s occupancy touched 74.2 per cent, ARR $142 and RevPAR $105.36 in the first nine months of the year.
“Abu Dhabi’s hotel market is going from strength to strength with a strong performance in September boosting year-to-date figures. The continual increase in occupancy levels to 74.2 per cent up to September has allowed hoteliers to drive higher average room rates for the first time higher than 2013 levels,” Goddard said.
He expects the positive hotel performance in the capital to continue in the coming month due to events that include Formula 1 Abu Dhabi Grand Prix, which runs from November 21 to 23, and the opening of Yas Mall during the same month.
Egypt:
Meanwhile, hotels in Sharm Al Shaikh, Egypt, saw occupancy grow by 43.5 per cent to 77.7 per cent, and ARR jump 18.2 per cent to $50.39, resulting in RevPAR to touch $39.15.
In August, 195,257 tourists visited Egypt, up 91.6 per cent compared to the corresponding time in 2013, according to a statement by the Egypt Tourism Authority on Thursday. There were 5,704 Emirati visitors during the month. So far this year, 19,968 Emirati tourists visited the country from 12,646 during the same period last year.
In the first seven months of the year, Egypt welcomed 5,162,970 tourists.
