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Dubai hotels demonstrate stability for the first seven months of 2012

The latest reports again show that Dubai hotels are performing better than those in Abu Dhabi.

In summary:

  • Revenue per available room increased by 10.3%
  • Average room rates rose by 8.7 percent
  • Abu Dhabi should start seeing improvement with major upcoming events

Dubai is continuing to show its popularity in the tourism stakes, with a recent report highlighting stability in the emirate’s hotel revenues and occupancy rates whilst Abu Dhabi’s performance was less impressive.

The reports from Ernst & Young and TRI Hospitality Consulting highlight that Dubai hotels were steady for the first seven months of the year when compared with the same period last year.

In terms of revenue, hotels in Dubai recorded a 10.3 percent increase in revenue per available room (RevPAR) and average room rates (ARR) increased by 8.7 percent from January to July meanwhile neighbouring Abu Dhabi saw decreases in RevPAR and ARR 12 and 11.3 percent respectively.

Results later on in the year are also expected to show improvement in both cities, with data expected to show that occupancy rates picked up their pace following the end of Ramadan.

Peter Goddard, Managing Director of TRI Hospitality Consulting in Dubai said: “Although performance levels are expected to improve in both cities after Ramadan, Abu Dhabi is likely to face continued pressure from increased competition especially when additional hotels including the Ritz Carlton enter the market at the end of 2012 and early 2013.”

Many recent reports have pointed to the fact that tourism is constantly improving in Dubai with airport passenger numbers and hotel occupancy numbers constantly increasing in 2012 but there are some forthcoming events that will also drive tourism in Abu Dhabi.

Yousuf Wahbeh, Mena Head of Transaction Real Estate at Ernst & Young, told Gulf News that Abu Dhabi currently has 22,800 rooms across 130 resorts with this figure expected to rise to 24,000 by the end of the year. He added that events such as the Abu Dhabi Grand Prix, Yas Waterworld opening, Abu Dhabi Art and World Routes Development Forum will also bring a great number of tourists.

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