Dubai hotel sector posts 14pc growth
Dubai, June 4, 2014
Dubai's hospitality sector registered a 14.2 per cent year-on-year growth in the first nine months of 2013 to hit Dh12.2 billion ($3.32 billion), said a report.
The occupancy rates in its hotel and hotel apartments rose for the fourth consecutive year in 2013 hitting a record 80.5 per cent thus providing operators with scope to continue increasing their average daily rates (ADR), according to Knight Frank, a leading property consultancy.
A combination of higher occupancy, and rising ADR since 2010, has meant that revenue per available room (RevPAR) across Dubai’s hospitality market has been growing at an annual average rate of 10.7 per cent over the past three years, the report added.
At 18.4 million, Dubai International handled more passengers than London Heathrow (16.1 million) in the first quarter. Moreover, passenger traffic at the airport was up 11.4 per cent on the corresponding part of 2013, said the property expert.
On Abu Dhabi, Knight Frank said its hospitality sector appears poised to turn a corner. "While ADR fell for the fifth consecutive year in 2013 (by 1.9 per cent year-on-year), the occupancy rose for the first time since 2008 – by 6 points to 71 per cent.
The jump in occupancy was enough to push up the emirate’s RevPAR by 6.5 per cent in 2013. Since ADR typically lags occupancy, all else equal, we expect the former to rebound over the next year or two, the report added.-TradeArabia News Service