Drop in ADR boosts occupancy at UAE hotels

Drop in average daily rates helped boost hotel occupancy in the UAE in the month of August 20104, according to data compiled by STR Global.

Average daily rate (ADR) fell 5.9 per cent to Dh581.73 while occupancy in August rose 4.7 per cent to 71.5 per cent.

Revenue per available room (RevPar) dropped 1.5 per cent to Dh416 during the month.

The Middle East/Africa region reported mixed performance during August 2014 when reported in US dollars, STR Global said.

In August, the region reported a 14.8-per cent increase in occupancy to 64.3 per cent, a 7.5-per cent decrease in average daily rate to $141.66 and a 6.3-per cent increase in revenue per available room to $91.09.

“This month RevPar grew 6.3 per cent, primarily driven by occupancy growth across all sub-regions”, said Elizabeth Winkle, managing director of STR Global.

“Egypt reported strong performance for the second consecutive month, due in part to low performing comparables in 2013 when the country experienced an outbreak of violence as the military moved to clear protest camps and resulted in a period of political instability. The question remains whether this uptick is the beginning of a turnaround for Egypt”.

Cairo, Egypt, jumped 180.5 per cent in occupancy to 58.8 per cent, reporting the largest increase in that metric, followed by Riyadh, Saudi Arabia (+35.1 per cent to 48.3 per cent), and Beirut, Lebanon (+23 per cent to 59.5 per cent).

Dubai fell 5.6 per cent to $181.83 in ADR, experiencing the largest decrease in that metric.

Nairobi, Kenya, fell 13.8 per cent to 58.1 per cent in occupancy, posting the only decrease in that metric. Nairobi also led the RevPAR decreases, falling 18.2 per cent to $81.

Cape Town, South Africa (+8.7 per cent to $100.60), and Cairo (+8.6 per cent to $108.29) achieved the largest ADR growth.

Six markets reported RevPAR growth of more than 20.0 per cent: Cairo (+204.6 per cent to $63.65); Riyadh (+28.7 per cent to $103.45); Cape Town (+26.8 per cent to $61.46); Manama, Bahrain (+24.1 per cent to $110.52); Beirut (+23.2 per cent to $101.17); and Jeddah, Saudi Arabia (+21.2 per cent to $206.23).

Follow Emirates 24|7 on Google News.