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Dubai Hotels Record an Impressive 86.0% Occupancy During the First Half of 2013

Hotel Atlantis in Dubai
Hotel Atlantis in Dubai
Hotel Atlantis in Dubai

Abu Dhabi hotels continued to attract an increasing number of visitors in June with hotels recording a 9.7 percentage point growth in occupancy during the month of June. Although demand increased, Average Room Rates (ARR) declined 7.7% to US$115.12; however it was not enough to prevent an 8.3% rise in Revenue per Available Room (RevPAR) and a 2.9% growth in Gross Operating Profit per Available Room (GOPPAR) to US$29.57

?Abu Dhabi is continuing to see an increase in visitor demand, as illustrated through a 9.7 percentage point growth in occupancy during June pushing year to date occupancy figures to 75.0%. The growth in demand is attributed to a 25.0% increase in visitors to the capital and a 12.6% rise in passengers through Abu Dhabi International Airport during the first half of the year. Although the market continues to rebound and strengthen, hoteliers continue to face considerable challenges in reversing declining average rates in the response to a substantial increase in supply? commented Peter Goddard, Managing Director of TRI Hospitality Consulting in Dubai.

Dubai?s hotel market continued to dominate regional performance in June, as key indicators maintained their growth with occupancy increasing by 3.6 percentage points to 79.2%, while a 6.2% rise in ARR to US$207.49, drove RevPAR up 11.2% to US$164.22. An increase in food and beverage revenues helped with driving an 7.3% growth in Total Revenue Per Available Room (TrevPAR) which boosted profitability by 12.2% to US$90.37.

?Dubai?s hotel market continues to grow from strength to strength with a 3.5 percentage point growth in occupancy levels to an impressive 86.0% for the first half of the year. The high levels of demand continue to be driven by the strong economic activity within the city, coupled with its attractiveness as an all-round leisure destination. Furthermore, high attendance levels at large annual events and festivals have also contributed to this growth and assisted in boosting occupancy during certain periods of the year.? commended Goddard.

Corporate demand was the driving factor behinds Kuwait?s hotel performance in 2013, as the city hosted conferences and events that attracted government officials and private sector stakeholders particularly in the energy sector. In June, Kuwait achieved a 10.7% growth in RevPAR performance to US$147.84 driven by a 5.6 percentage point increase in occupancy. This resulted in a 12.8% increase in TRevPAR, however slightly higher payroll costs kept GOPPAR at US$130.14.

Kuwait?s hotel market has shown resilience in the first half of the year with occupancy levels and ARR improving increasing 4.7 percentage points and 1.7% respectively, boosting RevPAR by 10.3% to US$159.98. Strengthening performance in food and beverage revenues coupled with lower payroll expenses saw TRevPAR and GOPPAR increase by 17.4% and 20.8% to US$357.20 and US$168.72.

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Source Hotel News Resource