UAE’s hotel bounce back : HotStats MENA
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In December, Dubai’s four and five star hotels maintained strong performance with revenue per available room (RevPAR) increasing by 2.2% to US$308.26.
The growth in rooms revenue was driven by a marginal growth in average room rate (ARR) which rose by 0.4% to US$375.11. Higher food and beverage and conferencing revenues drove a 3.5% increase in total revenue per available room (TRevPAR) to US$573.30 and supported profitability, as gross operating profit per available room (GOPPAR) increased by 4.0% to US$286.33.
“Dubai hotels closed 2014 with strong occupancy. This increase was driven by a two percent increase in ARR. Although the market has been facing challenges with geopolitical issues in Eastern Europe and revival of Egypt’s tourism industry, Dubai continues to steam ahead,” said Christopher Hewett, senior consultant at TRI Consulting in Dubai.
Abu Dhabi hotels recorded a 22.8% growth in RevPAR to US$141.55. The strong demand levels lead to an increase in healthier ARR, which grew by 7.9% to US$170.37. The growth in rooms revenue was offset by a reduction in food and beverage revenues which fell by 4.4% and 2.4% respectively; however, TRevPAR performance remained strong, up by 15.8% to US$301.25.
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