Dubai hotel profit margins hit 36-month high
New TRI Hospitality data also shows occupancy rate exceeds 90% in Nov
Dubai hotels registered their highest profit margins in 36 months in November, according to the latest HotStats survey published by TRI Hospitality Consulting.
Occupancy across surveyed hotels in Dubai increased by 3.1 percent to 90.8 percent while average room rates (ARR) increased 1.6 percent to $360.47.
This led to a 5.2 percent increase in revenue per available room (RevPAR) to $327.16, the survey showed.
It said a 23.2 percent increase in meeting revenues coupled with a slight reduction in payroll costs aided a 12.3 percent improvement in gross operating profit per available room (GOPPAR) to $297.15, the highest in the region for the month and highest for the city in the last 36 months.
Peter Goddard, managing director of TRI Hospitality Consulting, said: “Dubai airport has announced that passenger traffic is set to surpass the 2012 target of 56.5 million passengers almost reaching its capacity of 60 million passengers.
"Travellers from Western Europe flocked in to the city as a number of bank holidays such as All Saint’s Day and Remembrance Day resulted in extended breaks in the EU. A number of high profile events including the World Parachuting Championships and the Helishow, aided in drawing a large number of visitors to the city,” he added.
By contrast, increasing competition in Abu Dhabi's hotels sector continued to drag down room rates in November, according to the latest analysis.
The TRI Hospitality report said average room rates in the UAE capital fell seven percent in November, dragging down revenue per available room (RevPAR) by 6.8 percent.
The declines came despite a small rise in occupancy levels, up 0.2 percent to 83.5 percent - among the highest in the Middle East region.