UAE Hotels Record Strong Growth In August

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By Mary Sophia  http://gulfbusiness.com

UAE hotels have recorded positive year-to-year growth in revenue per available room (RevPAR) and average room rates (ARR) in August, according to an Ernst & Young survey.

Dubai’s overall average occupancy increased by approximately 7.8 per cent in August compared to the same period last year. Average daily rate (ADR) rose by 11.7 per cent, resulting in a healthy increase in RevPAR of 25.8 per cent.

“This (increase) was mainly due to tourist arrivals from the GGC and the MENA region visiting Dubai during Eid Al Fitr as well as the Dubai Summer Surprises festival which attracts tourists from all around the world,” said Yousef Wahbah, MENA head of transaction real estate at Ernst & Young.

Dubai’s hospitality market performance also improved month-over-month with ADR increasing to $179 in July to $213 in August. Average occupancy rates also rose by 19 per cent during the same period.

Abu Dhabi hotels’ ADR increased from $128 to $145 year on year in August, resulting in RevPAR growth of 19.6 per cent during the same period, the survey noted.

“As we enter the latter part of the year, we expect the majority of the MENA hotel market to continue improving,” said Wahbah.

“Markets such as the UAE in particular will benefit as the convention business season begins with events such as ‘GITEX Shopper’ and ‘Cityscape’ which are expected to prop the hospitality market further.”

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