Abu Dhabi's hospitality sector continued to experience an increase in the number of hotel guests and guest nights throughout the first quarter of the year, with 964,722 hotel guest arrivals in Q1 - an increase of 13 per cent year-on-year.

In addition, hotel guest nights registered a 10 per cent year-on-year increase with figures standing at 2,810,638.

With regards to the passenger traffic at Abu Dhabi International Airport, Q1 registered a total of 6,044,025 passengers (9.5 per cent year-on-year increase). India recorded the highest passenger traffic figures during the quarter - with 1,082,527 passengers, which accounted for 18 per cent of the total numbers.

Nevertheless, due to a substantial rise in the capital's hotel stock over the last few years coupled with the continuing economic difficulties experienced by lucrative source markets such as Russia and China, euro depreciation and the sustained low oil prices, Abu Dhabi City registered year-on-year declines across all three main key performance indicators. Occupancy rates during the first quarter dropped by 0.4 per cent to 80 per cent, while ADR and RevPAR figures stood at Dh417 ($113.5) and Dh334 ($90.9), recording 13.1 per cent and 13.5 per cent year-on-year declines respectively.

The first quarter of the year witnessed the opening of Al Seef Resort & Spa by Andalus, which added 210 hotel apartments to Abu Dhabi's hotel stock. The total number of hotel rooms and hotel apartments in the city of Abu Dhabi at the end of Q1 amounted to 26,394 spread across 138 hotel establishments.

The hotel supply in the city is expected to increase by approximately 2,900 keys by the end of 2016. Some of the most notable projects slated for completion by year-end include Four Seasons Al Maryah Island (200 keys - Q2 2016), Grand Millennium Bab Al Qasr (677 keys - Q3 2016), Marriott Hotel Downtown (315 keys - Q3 2016), Edition Hotel Abu Dhabi Marina (200 hotel rooms & 57 serviced apartments - Q3 2016) and Grand Hyatt Abu Dhabi Hotel & Residences Emirates Pearl (368 hotel rooms & 60 serviced apartments - Q4 2016). - TradeArabia News Service