UAE room rates up 4%

UAE hotel occupancy dropped 7.9 per cent to 46 per cent in the UAE in July 2014 compared to the same month last year, according to data compiled by STR Global. In contrast revenue per available room also fell four per cent to Dh250 while average daily room rate bucked the trend, rising four per cent to Dh544.

Asian hotel booking website Agoda reporter that the time traveller can get best deal for booking hotel in Dubai is during the summer period between mid-May to July-end. During this summer period, generally room rates drop substantially due to slow down in tourist arrivals and expatriates fly to their home countries.

The Middle East/Africa region reported positive performance during July 2014 when reported in US dollars, according to data compiled by STR Global.

In July the region reported a 0.9-per cent increase in occupancy to 49.3 percent, a 6.9-per cent increase in average daily rate to $156.54 and a 7.9-per cent increase in revenue per available room to $77.15.

“On a 12-month-moving-average basis, supply and demand growth are on par at 2.8 percent, which means occupancy growth is flat, at 61.4 percent," said Elizabeth Winkle, managing director of STR Global.

“Ramadan occurred entirely in July which resulted in lower than usual levels of demand in what is typically the region’s weakest month of the year.

The confluence of these factors resulted in lower than average performance for the month. We view this as an anomaly and would expect performance to improve in August.

“In Makkah and Medina, where the two holy cities typically welcome an influx of travellers during this time, we saw occupancy growth well over 20.0 per cent for both markets in July. Makkah also saw a strong ADR increase, up 23.1 per cent in July”, Winkle said.

Highlights among the Middle East/Africa region’s key markets for July 2014 include (year-over-year comparisons, all currency in US dollars):

· Cairo, Egypt (+73.9 per cent to 29.3 percent), and Cape Town, South Africa (+15.8 per cent to 52.4 percent), reported the largest occupancy increases.

· Amman, Jordan, fell 20.2 per cent in occupancy to 34.4 percent, reporting the largest decrease in that metric. Nairobi, Kenya, followed with a 16.0-per cent decrease to 55.3 percent.

· Jeddah, Saudi Arabia, increased 12.5 per cent in ADR to $286.28, achieving the only double-digit increase in that metric.

· Nairobi (-5.4 per cent to $141.62) and Riyadh, Saudi Arabia (-4.8 per cent to $207.05) posted the largest ADR decreases.

· Three markets experienced RevPAR growth of more than 15.0 percent: Cairo (+82.6 per cent to $30.57); Manama, Bahrain (+20.1 per cent to $72.94); and Cape Town (+15.4 per cent to $49.76).

· Amman fell 21.4 per cent in RevPAR to $54.86, posting the largest decrease in that metric. Nairobi followed with a 20.5-per cent decrease to $78.29.

(Home page image courtesy Shutterstock)

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