UAE hotels post higher occupancy rates in July
Hotels in Dubai recorded a 6.2% growth in occupancy
Dubai: Hotels in the Middle East and North Africa (Mena) posted a mix of increases and drops in July 2016 over the same period last year, according to the latest report from global consultancy EY.
Hotels in Dubai recorded a 6.2 per cent increase in occupancy year-on-year in July to 67.4 per cent and 5.1 drop in average room rates (ARR) to $168 (Dh616.6) during the same period. This resulted in a 4.5 per cent rise in revenue per available room (RevPAR — an industry measure of occupancy and rates) to $113.
Similarly, according to a report from research firm STR Global, occupancy in Dubai rose 17.6 per cent year-on-year in July to 67.5 per cent, while RevPAR increased 7.5 per cent to Dh365.08.
However, in the January to July period, occupancy in the emirate edged down 2 per cent year-on-year, to 79 per cent, and RevPAR fell 7.7 per cent to $203, as per EY’s estimates.
“With the Eid Al Fitr Holiday falling in July 2016, many of the Mena hospitality markets performed positively compared to the same period last year,” Yousef Wahbah, Head of Transaction Real Estate for the MENA region at EY, said in a statement on Sunday,
In Abu Dhabi, meanwhile, occupancy rose 7 per cent last month to 68 per cent, while ARR fell 10 per cent to $97, which contributed to a 0.6 per cent decline in RevPAR to $67. But in the first seven months of this year, occupancy in the capital declined 2 per cent to 75 per cent and RevPAR plummeted 17.2 per cent to $97.
In Ras Al Khaimah, occupancy jumped 17.5 per cent in July to 65.7 per cent, ARR decreased 6.6 per cent to $155 and RevPAR rose 27.4 per cent to $102.
“GCC [Gulf Cooperation Council] hotels recorded positive revenue per average room in July 2016 compared to the period last year. Saudi Arabia was the only exception, experiencing a drop in performance in its hospitality market across its leading cities, which was due to the change in dates of the holy month compared to July 2015,” Wahbah said.
Hotels in Jeddah, Saudi Arabia, however, posted a 3 per cent decline in occupancy to 81 per cent and a 2.2 per cent increase in ARR to $337, resulting in RevPAR edging down 0.8 per cent to $275.
Elsewhere in the region, Cairo hotels saw occupancy jump 29 per cent to 68 per cent, ARR increase 8.5 per cent to $144 and RevPAR rise 87 per cent to 98 per cent.
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