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30. November 2011 
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Occupancies surge in Abu Dhabi while Dubai hits 2007 level
Hotels in Abu Dhabi reported a surge in occupancy during the month of October 2011 while hotels in Dubai were as full as they were in 2007, according to the latest HotStats survey of full-service hotels in six regional cities by TRI Hospitality Consulting.
Abu Dhabi registered the largest increase in occupancy in the region, growing 9.7 percentage points to 82.8% in October 2011 and moving closer to its high profile neighbour Dubai which saw occupancy increase to 87.3% during the month. However, the capital city saw its room rates (ARR) continue to drop to US$ 156.89, closing the month 18.6% below the same period last year. This has resulted in a drop in the bottom line as GOPPAR for the month dropped by 8.2% to US$ 121.54.
“Occupancies across regional destinations typically improve from October as the region experiences the exit of hot summer months and the onset of cooler weather conditions. This is when these markets see the leisure demand pick up and large commercial centres witness an increase in corporate and MICE demand, which benefits major MICE destinations such as Dubai and Abu Dhabi”, said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai. Hotels in Dubai and Abu Dhabi have also benefited from the Arab Spring this year as the country is perceived to be safe, politically stable and relatively liberal amongst its GCC peers.
In Abu Dhabi, hotels strongly benefited from some of the high profile international events held in the city in October, including the Abu Dhabi Medical Congress and the 10-day long Abu Dhabi Film Festival. Although the exact number of visitors this year is not yet available, the Abu Dhabi Film Festival is estimated to have attracted more than 30,000 visitors in 2010 including nearly a thousand film professionals and journalists, boosting demand for hotel rooms.
In Dubai, the growth trend in hotel performance has continued into October as the city registered the largest RevPAR growth (13.1%) amongst the six cities surveyed, achieving a RevPAR of US$ 196.85 for the month. Hotels in the city saw occupancy levels soar to 87.3% assisted by the surge in demand during the week-long GITEX Technology Week and GITEX Shopper which saw visitor numbers touch 169,018 this year. TRevPAR achieved double digit growth in October to reach US$ 350.39, boosting GOPPAR by 84% from US$ 87.23 in the previous month (September) to US$ 159.86 during the month.
“The significant growth in demand has helped Dubai hotels to achieve occupancy levels comparable to or perhaps slightly better than 2007 when the market was reaching its peak. DTCM statistics for October 2007 indicate an occupancy of 84.58% for the five and four star markets. However, the latest HotStats survey within these markets indicate that the hotels are currently achieving stronger demand levels although the rates achieved are significantly lower than those in the boom time”, added Goddard.
Egypt remains under the grip of uncertainty while Saudi markets remain stable in October
Occupancy levels for four out of the six cities surveyed by HotStats for the month of October 2011 reported a decline while average rates showed varying levels of growth. Cairo and Sharm El Sheikh continued to be the loss leaders across most of the metrics while the Saudi cities of Riyadh and Jeddah saw marginal decline in occupancy levels.
Abu Dhabi registered the largest increase in occupancy in the region, growing 9.7 percentage points to 82.8% in October 2011 and moving closer to its high profile neighbour Dubai which saw occupancy increase to 87.3% during the month. However, the capital city saw its room rates (ARR) continue to drop to US$ 156.89, closing the month 18.6% below the same period last year. This has resulted in a drop in the bottom line as GOPPAR for the month dropped by 8.2% to US$ 121.54.
“Occupancies across regional destinations typically improve from October as the region experiences the exit of hot summer months and the onset of cooler weather conditions. This is when these markets see the leisure demand pick up and large commercial centres witness an increase in corporate and MICE demand, which benefits major MICE destinations such as Dubai and Abu Dhabi”, said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai. Hotels in Dubai and Abu Dhabi have also benefited from the Arab Spring this year as the country is perceived to be safe, politically stable and relatively liberal amongst its GCC peers.
In Abu Dhabi, hotels strongly benefited from some of the high profile international events held in the city in October, including the Abu Dhabi Medical Congress and the 10-day long Abu Dhabi Film Festival. Although the exact number of visitors this year is not yet available, the Abu Dhabi Film Festival is estimated to have attracted more than 30,000 visitors in 2010 including nearly a thousand film professionals and journalists, boosting demand for hotel rooms.
In Dubai, the growth trend in hotel performance has continued into October as the city registered the largest RevPAR growth (13.1%) amongst the six cities surveyed, achieving a RevPAR of US$ 196.85 for the month. Hotels in the city saw occupancy levels soar to 87.3% assisted by the surge in demand during the week-long GITEX Technology Week and GITEX Shopper which saw visitor numbers touch 169,018 this year. TRevPAR achieved double digit growth in October to reach US$ 350.39, boosting GOPPAR by 84% from US$ 87.23 in the previous month (September) to US$ 159.86 during the month.
“The significant growth in demand has helped Dubai hotels to achieve occupancy levels comparable to or perhaps slightly better than 2007 when the market was reaching its peak. DTCM statistics for October 2007 indicate an occupancy of 84.58% for the five and four star markets. However, the latest HotStats survey within these markets indicate that the hotels are currently achieving stronger demand levels although the rates achieved are significantly lower than those in the boom time”, added Goddard.
Egypt remains under the grip of uncertainty while Saudi markets remain stable in October
Occupancy levels for four out of the six cities surveyed by HotStats for the month of October 2011 reported a decline while average rates showed varying levels of growth. Cairo and Sharm El Sheikh continued to be the loss leaders across most of the metrics while the Saudi cities of Riyadh and Jeddah saw marginal decline in occupancy levels.
