Abu Dhabi hotel profits up 11.8% in H1
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Abu Dhabi’s hotel market recorded an 11.8% profit increase in the first six months of the year, according to latest data from HotStats. Profits in Abu Dhabi grew off the back off strong top-line performance as occupancy levels grew by 4.9% to 78.2%, according to HotStats survey of full service hotels in five Middle East and North Africa cities.
Revenue per available room (RevPAR) was up 6.8%, while average available room rates (ARR) were stable in the first half of 2014.
“Occupancy growth allowed hoteliers to maintain steady average rates during the first six months of the year, as the market showed signs of stabilisation. ARR have increased for four consecutive months while occupancies have seen a consistent upward trend for nearly two years,” said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
In June, ARR and occupancy rates increased by 4.8% and 3.7%, respectively, while RevPar increase 11.4% to US$85.25 (AED313). Non-room revenue, particularly from conference activities, increased to boost total revenue per available room (TRevPAR) by nine per cent to US$200.96 and pushed bottom line profits up 31.3% to US$31.39 during June.
Doha saw a 11.4% growth in occupancy to 75.9% in the first half of the year, driving RevPAR up 11.5% to US$166.66 despite ARR falling by 5.3%. According to HotStats, food and beverage activities generated 45.8% of hotel revenues.
“Doha hotels are yet to show signs of stabilisation in average room rates during the first half of the year, although occupancy levels continue to grow on the back of increased demand from international and regional visitors, particularly, Saudi nationals,” Goddard said.
In Jeddah, the average room rates jumped 15.5% to US$305.92 in June. And while occupancy dropped 3.1% to 82.3%, ARR drove RevPAR to record 11.3% growth to US$251.71, according to HotStats. TRevPAR reached US$386.95 due to high corporate and MICE (meetings, incentives, conferences, and exhibitions) demand.
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