Abu Dhabi hotels struggle with rates
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Abu Dhabi hotels continued in their struggle to remain afloat as performance indicators fell further throughout the month of November, according to TRI Hospitality Consulting’s latest HotStats for MENA.
Although occupancy in the capital increased 0.2 percentage points reaching 83.5%, among the highest in the region, ARR shrunk 7.0%, reducing RevPAR by 6.8%.
A significant decrease in food and beverage revenues coupled with a decline in conference and banqueting revenues saw TRevPAR drop 5.9% with GOPPAR declining 8.2%.
“Hotels in Abu Dhabi maintained occupancy levels of 2011, however bottom line performance continues to suffer due to the perpetual pressure on rates as a result of new competition,” asserted director of TRI Hospitality Consulting in Dubai, Peter Goddard.
The capital city boasted the second highest occupancy rates in the region during November. Conversely, RevPAR remained subdued as hotels continue to lower their rates despite a steady growth in demand.
“Abu Dhabi’s occupancy was further aided by the hosting of the Abu Dhabi Grand Prix which attracted over 50,000 fans,” added Goddard.