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19 March 2024

September slowdown in UAE hotel occupancy, revenues

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By Staff

The UAE hospitality sector witnessed slowdown in September as the major segments – occupancy, average daily rates (ADR) and revenue per available room (RevPar), recorded decline.

According to data compiled by STR Global, occupancy rate in UAE hotels dropped 0.1 per cent to 72.9 per cent while average daily rates fell 3.3 per cent to Dh575.8 last month.

Similarly, revenue per available room fell 3.4 per cent to Dh419.85 compared to the same month last year.

The Middle East and Africa (MEA) region reported positive performance during September 2014 when reported in US dollars, STR Global said.

In September, in year-over-year comparisons, the region reported a 13.1-per cent increase in occupancy to 65.5 per cent, a 1.3-per cent increase in average daily rate to $145.12 and a 14.5-per cent increase in revenue per available room to $94.99.

“All three sub-regions in September saw occupancy levels of 60 per cent or above”, said Elizabeth Winkle, managing director of STR Global. “It is positive to see consistency in performance in spite of instability leading to uncertainty in several countries.

“Amongst the high performers, Saudi Arabia is one of the region's strongest in September as the country was gearing up for Hajj, which took place the first week in October”, said Winkle.

“Cairo, whilst still in recovery mode, achieved occupancy levels of 51.8 per cent with significant year-over-year growth of 107.5 per cent”.

Cairo reported the largest occupancy increase, jumping 107.5 per cent to 51.8 per cent. Beirut, Lebanon, followed with a 60.9-per cent increase to 55.6 per cent.

Jeddah recorded the largest ADR increase (+14.7 per cent to $269.52), followed by Cairo (+12.7 per cent to $107.86) and Muscat, Oman (+11.8 per cent to $205.72).

Four markets achieved double-digit or more RevPAR growth: Cairo (+133.9 per cent to $55.82); Beirut (+68.0 per cent to $82.99); Jeddah (+21.9 per cent to $216.34); and Doha, Qatar (+12.2 per cent to $127.50).

Lagos, Nigeria, experienced the largest decrease in all three key performance metrics. The market’s occupancy fell 35.4 per cent to 36.8 per cent; its ADR was down 11.3 per cent to $248.47; and its RevPAR decreased 42.7 per cent to $91.40.

Year-to-date 2014, when reported in US dollars, the Middle East/Africa region’s occupancy increased 3.6 per cent to 62.8 per cent; its ADR was up 1.9 per cent to $161.62; and its RevPAR rose 5.7 per cent to $101.48.

“Year to date, MEA has achieved 5.7-per cent RevPAR growth”, Winkle commented. “2014 has proved to be occupancy driven, compared to 2013 when performance was more rate driven”.