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RESULT MIXED IN GULF STATES

Good year for Dubai hotels; 2,950 rooms added

Dubai, January 19, 2014

Dubai added approximately 2,950 new branded hotel rooms during last year, including several major 5-star hotel openings, a report said.

Dubai’s hospitality market has absorbed this influx of new supply well and the city’s hotels performed exceptionally well, as RevPAR declined only by 0.3 per cent, the report by Ernst & Young (EY) said.

Dubai’s overall average occupancy decreased by approximately 5.1 percentage points (pp) in November 2013 compared to November 2012. However, ADR (average daily rate) increased by 5.6 per cent, said Yousef Wahbah, Mena head of transaction real estate at EY.

The city’s hospitality market performance improved month over month, with ADR increasing from $330 in October 2013 to $333 in November 2013, which was coupled with an increase in average occupancy of 3 pp during the same period.

Abu Dhabi increased its supply of branded 4 and  5 star hotels during 2013, by introducing approximately 1,700 new hotel rooms.

The city witnessed a slight decrease in ADR in November 2013, dropping approximately 2 per cent from $256 to $250 year on year, resulting in a minor decline in RevPAR of 0.7 per cent during the same period.

In Saudi Arabia, Madinah and Riyadh’s hospitality markets registered a decline in RevPAR in November 2013 compared to November 2012. Madinah’s RevPAR decreased by 35.7 per cent  compared to November 2012 figures, mainly due to low ADR in November 2013 which averaged at $158 compared to $214 in November 2012, coupled by a drop in average occupancy of 7 pp during the same period, the EY report said.

Makkah also registered a decrease in ADR of 33.3 per cent in November 2013 compared to the same period last year, declining from $364 in November 2012 to $243 in November 2013.

Riyadh’s hospitality market also decreased during the same period, as average occupancy declined by 16 pp in addition to a decrease in ADR from $235 in November 2012 to $209 in November 2013, resulting in a decline in Riyadh’s RevPAR of 33.5 per cent, it said.

Occupancy rates in Muscat, Oman increased by 12 pp with ADR dropping slightly by 0.4 per cent resulting in an overall increase in RevPAR of 16.5 per cent compared to the same time last year.

Bahrain experienced a 3 pp increase in occupancy with ADR declining by 2 per cent and RevPAR increasing overall by 5.3 per cent compared to November 2012.

Doha saw a slight dip in its occupancy rates, with November recording a 3 per cent decrease and a 16.5 per cent decrease in RevPAR largely due to rates dropping from $289 in November 2012 to $252 in November 2013.

The hospitality market in Cairo and the Egyptian Red Sea city resorts continue to weather a downward cycle with Cairo RevPAR declining by approximately 65.3 per cent in November 2013 when compared to the same period last year, the report said. Average occupancy decreased from 44 per cent in November 2012 to 17 per cent in November 2013 as well as a drop in ADR from $94 to $80 during the same period.

In the Levant region, both Lebanon and Jordan saw their occupancy rates increase, with 9 pp and 3 pp, respectively compared to 2012. – TradeArabia News Service
 




Tags: Dubai | hotels | EY |

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