Hotel performance in Abu Dhabi remained under pressure over the first eight months of the year with rates dipping double-digits, a new report unveiled.

According to JLL's Q3 Abu Dhabi Real Estate Market Overview, average daily rates (ADRs) declined by 10 per cent in year-to-August when compared to the same period last year.

City wide ADRs stood at $121 in same period while overall occupancy rates stood at 70 per cent, down 2.3 per cent on the same time last year.

As a result, RevPAR lost 12 per cent to reach $85 over the first eight months of the year.

The report noted an increase in supply with two new hotel openings in Q3, adding more than 400 rooms to the market – the Marriott Downtown Abu Dhabi at Bloom Central and Gloria Downtown Hotel. The serviced apartments sector also witnessed the delivery of the Marriott Executive Apartments at Bloom Central.

A further 1,500 rooms are expected to enter ABu Dhabi's hospitality sector by the end of the year from three large hotel openings - Grand Hyatt Hotel and Residence Emirates Pearl, Millennium Bab Al Qasr and the Marriott Al Forsan.

JLL said hotel occupancies in Abu Dhabi have remained largely stable at 70 per cent this quarter, adding that the hospitality industry’s diversification towards leisure tourism continues to gain traction and has reduced pressure on occupancy rates. - TradeArabia News Service