UAE hotels experiences healthy rates in occupancy

Published on : Friday, June 29, 2018

UAE hotelsHotels all over UAE keeps on enjoying healthy occupancy rates, regardless of challenging market conditions, experts informed.

As per the April 2018 MENA Hotel Benchmark Survey Report by EY, maximum internationally branded four and five star hotels all over the Middle East hospitality market experienced a major drop in revenue per available room (RevPAR) in comparison to the month of April 2017. In terms of KPIs, the UAE reconfirmed its competitive lead with Abu Dhabi witnessing the highest occupancy rate of 87.9 percent and Dubai relishing the highest RevPAR of $235, as well as maintaining the highest average room rate (ADR) of $288.

“Dubai is still one of the most dynamic hotel markets in the world,” noted Olivier Harnisch, CEO of Emaar Hospitality Group. “We have the seventh highest RevPAR in the world; so even though rates have been under pressure over the past year, we are still operating at a very high level. We have higher RevPARs compared to cities like Rome and Los Angeles. In terms of tourism, both demand and supply have been growing strongly in Dubai; tourism grew by seven per cent last year, and we have several hotels opening.”

He further added: “In a dynamic mix such as this, there are periods where RevPARs are under pressure. This is currently the case, but I believe that this is temporary. We have very high occupancies, and tremendous growth rates from some emerging markets such as China, which grew by 60 per cent – it is now the fifth biggest source market for Dubai for tourism. Russia has grown by over a 100 per cent over the last year; and in the first half of 2018, it is the fourth biggest source market. Keeping this in mind, it is clear that there is a change in the business mix, but Dubai is today the fourth most visited city in the world, with the highest ever tourist spend in the world.”

He observed that the city keeps on enjoying healthy figures, and that its standing and attractiveness continues to grow. “In the long term, we are well positioned to be one of the best hotel markets in the world.”



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