The recent statistics from HotStats stated that profits in Abu Dhabi hotels soared 25.8% on the back of strong revenues. Abu Dhabi attracted a high number of international leisure and MICE visitors that drove occupancy rates of four and five star hotels to 84.6% in April.
The strong demand allowed hoteliers to increase yields with market witnessing a 9% surge in Average Room Rates (ARR) to US$163.32, resulting in Revenue per Available Room (RevPAR) rising by 18.2% to US$138.22. An increase in leisure and MICE demand in the city contributed to a substantial rise in conferencing, food and beverage revenues.
“Abu Dhabi’s strong hotel performance was driven by a consistent rise in visitor numbers that boosted demand for rooms and F&B activity. The Chinese incentive trip drove demand for top tourist attractions on Yas Island and benefitted Abu Dhabi’s hotels which witnessed a 25.8% uplift in profits,” said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
Subsequently, hotels in Jeddah also reported growth in occupancy at 2.5% to 81.4%, rising on the back of strong demand. Average room rates increased 9.3% closing the month at US$268.59 and boosting RevPAR by 12.7% to US$ 218.57. Riyadh maintained a steady demand level on the back of strong corporate activity. Hotels reported occupancy growth of 5.4% to 73.0%, although the market experienced a 4.9% decline in average rates to US$251.07, leaving RevPAR 2.7% higher compared to 2013.
Unlike UAE and KSA, Sharm El Sheikh hotels struggled to remain afloat as average rates fell throughout the month. Occupancy levels declined 8% reaching 62.5%, while ARR plummeted 13.3% to US$44.57 and reduced RevPAR by 23.2% to US$27.84. The same was witnessed by Kuwait hotels where occupancies declined due to lower corporate demand. Monthly performance indicators for Kuwait hotels showed a 10% decline in occupancy to 54.2%. The 2.2% rise in ARR to US$282.52 was insufficient to negate the 13.8% decline in RevPAR. The corporate segment declined three percent from 2013 to constitute 34.5% of the market.