Abu Dhabi hotels ADR rates jump to two-year high
STR's preliminary February data shows that the UAE capital's hospitality sector reported a 17.9% jump in average daily rates
Abu Dhabi hotels in February are projected to post their biggest rise in average daily room rates in the last two years, according to latest data from STR.
STR’s preliminary February data showed a 17.9% jump in ADR to AED 577.21 (US $157.14), putting an end to the trend of rate declines-driven oversupply of hotels in the city. Based on data from February, STR said Abu Dhabi reported a 1.5% rise in hotel supply while demand increased by 1.7%.
November's Formula 1 Grand Prix in Abu Dhabi boosted hotel revenues in November compared to the rest of 2016; however, profit per room was down on previous years.
Abu Dhabi seeks to welcome 7.9 million annual tourists to the region by 2030, with an estimated 74,000 hotel rooms required to host the expected arrivals, the demand for mid-market accommodation in the UAE capital is heating up.