Four and five-star hotels in Dubai reported weakening performance levels in August, with revenue per available room (RevPAR) declining 10.1 per cent to $147.45 for the month compared to the same period last year, a new report showed.

Due to a marginal rise in occupancy levels by 0.6 percentage points, the contraction in room revenues was led largely by average room rates (ARR) falling 10.8 per cent to $196.49, showed figures published by hospitality data firm Hotstats.

The drop in room revenues also impacted total revenue per available room (TRevPAR) which fell 10.6 per cent to $271.01. Profitability levels remained under pressure as key operating expenses rose, causing gross operating profit per available room (GOPPAR) to drop by 9.8 per cent to $69.10.

Hotels in Doha also saw RevPAR decline by 11.1 per cent to $111.14 in August, as soft demand forced hoteliers to drop rates in order to maintain market share.

ARR fell by 11.7 per cent to $190.04, while occupancy increased by a marginal 0.3 percentage points to 58.5 per cent. A surge in F&B revenues helped offset the lower room revenues but failed to escalate profits for hoteliers, with GOPPAR falling 17.7 percentage points to $80.64, the report said.

On the other hand, Jeddah continued to see hotel demand flourish, as hotels reported a 4.5 per cent increase in RevPAR for the month of August, compared to the same period last year. The surge in room revenues was driven by a solid 6.3 percentage point rise in occupancy levels, offsetting a 3.3 per cent drop in ARR to $286.66 for the period.

The spike in hotel guests had a trickle - down effect on other hotel services, as F&B revenues increased, allowing TRevPAR to grow 5.6 per cent. Complemented by a reduction in payroll expenses, profitability was boosted by the steady increase in top line revenues with GOPPAR growing by 8.8 per cent to $177.47, it said. – TradeArabia News Service