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Abu Dhabi hospitality market...strong performance
Image courtesy:bigstock/Patryk Kosmider

Abu Dhabi hospitality market posts solid Q1 growth

ABU DHABI, April 21, 2015

Abu Dhabi’s hospitality market was the strongest performing sector for the first quarter of 2015, witnessing an increase of 12 per cent in hotel average daily rates (ADRs) in the year-to-February compared to the same period the previous year, said a report by property expert JLL.

This was largely driven by wide-ranging government initiatives to increase tourism – including the expansion of Etihad Airways, further improvement of Abu Dhabi’s leisure offering and campaigns by the Abu Dhabi Tourism and Culture Authority to promote Abu Dhabi internationally, it stated.

Two major openings occurred during Q1 2015 – TRYP by Wyndham and the Swiss-Belhotel Corniche, adding 335 keys to the hospitality sector. Additionally, 500 keys were added to the serviced apartments sector with the opening of the Meera Time Residence in Saraya and Danat Residences in Danet Abu Dhabi.  

Hotel occupancies, however, witnessed a far lower rate of growth, reaching 77 per cent in YT February, up one percentage point from the same period in 2014, said JLL.

Abu Dhabi tourism is heavily reliant on GCC countries, which represent nearly 40 per cent of total hotel guests. Asia, on the other hand, is the fastest growing market with a 37 per cent increase in Asian hotel guests recorded in 2014.  

Approximately 3,000 additional rooms are expected to enter the market by the end of 2015, including the Millennium Bab Al Qasr with 677 rooms and Grand Hyatt with 368 rooms, said the property expert.

By the end of 2017, 5,500 rooms are planned to be added to the overall supply in the upscale  and upper upscale segments. This will bring the total room supply to approximately 25,700 rooms by the end of 2017. – TradeArabia News Service




Tags: abu dhabi | hospitality | Occupancy | ADR |

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