Dubai hotels witness minor revenue drop

Dubai hotels saw their RevPAR (revenue per available room) – an industry benchmark, dropping only slightly – by 2.64 per cent, in February compared to the same period last year, according to the latest industry data released by global business advisory firm, Deloitte, along with STR Global.

The Deloitte Analysis of selected STR Global hotel performance data for the Middle East for February 2010 reveals that Dubai hotels recorded a RevPAR of $199.14 (Dh730.84) during the period year-to-date February 2010 compared $204.55 RevPAR witnessed during the corresponding period in 2009, indicating a small 2.64 per cent decline.

Meanwhile, compared to the key world markets, the Middle East hotels achieved the highest RevPAR of $144.74 to $72.05 in Europe and $79.65 in Asia Pacific for the month of February 2010.

In January, however, the RevPAR of Dubai hotels went down by 12.5 per cent over the same period last year, Deloitte and STR Global data had revealed in its January report – clearly indicating that the RevPAR is improving for Dubai hotels.

Abu Dhabi, on the other hand, recorded a steep drop of 52.6 per cent in RevPAR levels as the hotels in the UAE capital saw RevPAR estimated at $142.47 during the period year-to-date February 2010, as against $300.60 during the corresponding period in 2009, as per the Deloitte and STR Global statistics.

The capital's new room supply, meanwhile, led Abu Dhabi hotels to record occupancy of 55.7 per cent during the period year-to-date February 2010, compared to 81.4 per cent during the corresponding period in 2009.

Dubai hotels, meanwhile, saw higher occupancy levels of 79 per cent for the same period this year owing to the city's promotional strategies, as per the Deloitte analysis, compared to 70.9 per cent occupancy recorded in the corresponding period in 2009, resulting in an increase of 11.5 per cent. In the Middle East, overall, hotels witnessed occupancy of about 60 per cent in February, compared to 61.3 per cent during the corresponding period in 2009, according to Deloitte and STR Global data.

RevPAR in the Middle East hotels, however, was estimated at $131.42 during the same period compared to $151.51 in February 2009.

Compared to the key world markets, the region's hotels achieved average occupancies of 66.5 per cent in February 2010, up by 1.9 per cent when compared to February 2009. The Asia-Pacific region and the Americas witnessed growth in occupancies of 4.7 per cent and 0.8 per cent respectively in February 2010 when compared to the same period a year earlier, according to the data.

Abu Dhabi hotels, meanwhile, had topped the Middle East charts for the highest average room rates and RevPAR at $285 and $201 respectively, in 2009, while Dubai hotels achieved the region's second highest RevPAR at $163 in the whole of last year, according to the recent STR Global data covering the period from January 1 – December 31, 2009, and as reviewed by business advisory firm, Deloitte.

The statistics revealed that the Middle East hotels outperformed the world hotels in 2009 having posted the highest occupancy, room rates and RevPAR in the world.

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