Abu Dhabi's hospitality sector recorded strong demand growth and lower rates in June, according to STR's preliminary data for the month.

Based on daily data from June, demand for hotels increased 10.9 per cent in June, the highest for a June since 2014. The year-over-year demand increase is said to be boosted by an earlier Eid al-Fitr, STR analysts said. Supply jumped up 4.2 per cent compared to June 2017.

Data also showed that Abu Dhabi hotels witnessed an increase in occupancy levels for the month, which climbed up 6.4 per cent to 53.8 per cent. Average daily rate, however, dipped 4.5 per cent to Dh318.12 ($86.5), resulting in a marginal 1.6 per cent increase in revenue per available room (RevPAR) to Dh171.31 ($46.6).

STR analysts note that the decrease in ADR is consistent with significant hotel supply growth as hoteliers charge less for rooms in an effort to maintain occupancy levels.

Absolute RevPAR levels in Abu Dhabi have remained well below historical averages primarily due to lower ADR, the report said.  - TradeArabia News Service