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UAE Hotels...performance picking up

UAE hotels' occupancy levels increase in July

ABU DHABI, September 3, 2015

UAE hotels performed significantly well in July with hoteliers in Abu Dhabi reporting a 10.5 percentage point rise in occupancy levels to 60.8 per cent, subsequently driving a 27.22 per cent growth in revenue per available room (RevPAR) to $73.01, reports showed.

The improvement in RevPAR can also be attributed to an average room rate (ARR) growth of 5.2 per cent to $120.05, showed reports by Hotstats, a hospitality data company.

The rise in room revenues helped offset the decline in food and beverage sales during the month and translated to a 19.9 per cent increase in total revenue per available room (TRevPAR). A growth in overall revenue helped hotels in the city increase gross operating profit per available room (GOPPAR) to $11.40.

Similarly, four- and five-star hotels in Dubai experienced a significant increase in performance levels in July compared to the same period last year. Hoteliers in the city were able to capitalise on higher demand levels as occupancy grew by 9.9 percentage points to 60.2 per cent, despite a marginal decline in ARR by 1.1 per cent to $200.77

As a result, RevPAR recorded a double digit growth of 18.3 per cent; however, TRevPAR was partially weighed down by softer food and beverage demand. Nonetheless, the increase in room revenues coupled with an 8.7 percentage point reduction in operating costs drove a significant rise in bottom line performance as GOPPAR grew from $0.07 to $36.52, said the report.

Hotels in Doha also continued to benefit from the strengthening demand in the city’s hotel market. Occupancy levels rose 2.7 percentage points to 49.8 per cent in July, fuelling a marginal 1.5 per cent increase in ARR to $199.76 and subsequent 7.3 per cent rise in RevPAR. A stronger food and beverage demand boosted TRevPAR which grew 11.9 per cent to $238.43. The increase in total revenues had a direct flow through to the bottom line with GOPPAR increasing 10 per cent to $56.67.

Jeddah hotels witnessed a 6.5 percentage point increase in occupancy to 80.9 per cent in July, allowing hoteliers to yield a 3.5 per cent rise in ARR to $315.00, driving a 12.5 per cent growth in RevPAR to $254.67. Softer food and beverage revenues had an impact on TRevPAR performance, yet it attained a 2.7 per cent growth over last year. Despite a minimal increase in operating expenses, the profitability of Jeddah hotels mimicked the growth in RevPAR with GOPPAR expanding 2.8 per cent to $197.00, it said. – TradeArabia News Service




Tags: UAE | hotel | Occupancy |

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