DUBAI: An influx of football fans during the AFC Asian Cup championships boosted the occupancy rate of Abu Dhabi hotels to their highest January levels since 2008, preliminary data from industry monitor STR show.
Occupancy in Dubai hotels meanwhile dipped last month, despite the emirate hosting some of the football matches, as the entry of additional keys into the market pressed rates.
For January, occupancy rates in Abu Dhabi hotels rose 1.9 percent to 78 percent while their Dubai counterparts dipped 5 percent to 82 percent.
“Even with supply growth of 11.2 percent, Abu Dhabi achieved its highest January occupancy since 2008. STR analysts credit a 13.4 percent spike in demand to the Asian Cup football championship,” the industry monitor noted in its report.
Average daily room rates (ADR) in Abu Dhabi rose 5.4 percent to $122.54 during the month, in line with the 7.5 percent increase in revenue per available room (RevPAR) to $95.61. The ADR for Dubai hotels meanwhile was down 10.9 percent to $195.85 while RevPAR was 15.3 percent lower to $160.14.
ADR and RevPAR are common performance metrics in the hotel industry.
On the broader Middle East region, occupancy rate dipped 0.9 percent to 68.2 percent in January while ADR was down 8.9 percent to $154.18 and RevPAR was 9.6 percent lower to $105.16.
“Occupancy and rate declines are to be expected for the market with a significant amount of new inventory in the pipeline ahead of Expo 2020,” STR said. “As of January, Dubai showed 170 projects in construction accounting for 48,759 rooms.”
“At the same time, demand (room nights sold) grew for the fourth consecutive month, and overall performance was solid during the first five days of the month thanks to New Year’s celebrations as well as Arabplast international trade exhibition.”