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04 December 2023

Abu Dhabi hotel rates drop by quarter

Occupancy rate rose marginally in Dubai and dipped in Abu Dhabi during the period. (FILE)

By Waheed Abbas

Average hotel room rate in Abu Dhabi plunged by a quarter during the first 11 months of 2010 following increased supply of new rooms in the emirate.

According to statistics of global consultancy Ernst & Young, room rate in Abu Dhabi fell 25.3 per cent to Dh1,140 during January-November period.

Increased supply also putting Dubai hotel room charges under pressure, resulting in 10 per cent fall to Dh789 for a one night stay.

Recent industry estimates showed that 244 new hotels will open in the UAE this year adding 55,000 rooms to the existing supply. Zabeel Investment’s five-star Jumeirah Zabeel Saraya was the latest entrant to the emirate’s hospitality industry adding over 405 rooms.

E&Y figures showed that Dubai City hotels took the bigger hit where the room rates dropped 14.4 per cent to Dh659 while Beach hotels nearly remained stable. One night cost at beach-front hotels in Dubai dropped just one per cent to Dh1,115.

In the Mena region, Makkah hotels were rated most expensive at $310 followed by Dubai Beach at $304 and Doha at $280 for a one night stay during January-November period.

Occupancy rate rose marginally in Dubai and dipped in Abu Dhabi during the period. Dubai Beach hotels enjoyed higher occupancy at 80 per cent despite three per cent drop while City hotels saw 73 per cent occupancy rate – three per cent increase during the 11-month period; while Abu Dhabi hotels room occupancy dropped two per cent to 74 per cent.

Egypt’s Sharm El Sheikh and Hurghada hotels enjoyed the highest occupancy rate of 86 per cent, followed by Dubai Beach and Abu Dhabi.

Revenues per available room (RevPAR) of Dubai and Abu Dhabi hotels dropped 9.3 per cent to Dh595 and 27.6 per cent to Dh631, respectively.

Dubai Beach hotels commanded the best RevPAR in the Mena region of Dh892 despite a 5.5 per cent drop in the first 11 month. Dubai city hotels’ RevPAR fell 11 per cent to Dh481.