Dubai hotels’ RevPar, ADR drop for fourth consecutive month

Occupied room nights however rose when compared to the same period in 2018

Image used for illustrative purpose only
Image used for illustrative purpose only

Hotels in Dubai registered a drop in revenue per available room (RevPAR) and average daily rate (ADR) for the fourth consecutive month in 2019.

According to figures revealed by Dubai Tourism, the average daily rate in April 2019 was AED493 ($134.22) in comparison to AED552 ($150.29) for the same period last year. Meanwhile, RevPAR was down to AED412 ($112.17) from AED475 ($129.32) last year.

However, occupied room nights increased from 10.96 million in April 2018 to 11.52 million in April 2019.

Dubai hotels’ performance indicators have been low since the start of the year. Figures by Dubai’s Tourism Ministry revealed that hotels here recorded a drop of 11.3% in their average daily rate while revenue per available room fell by 14.55% in Q1 of 2019.
 
In January alone, ADR dropped to AED529 ($144.02) from AED592 ($161.18) last year, while RevPAR dropped to AED437 ($118.98) from AED520 ($141.57). Meanwhile. February’s ADR was AED513 ($139.67) a drop from AED574 ($156.28) in 2018, while RevPAR dropped to AED432 ($117.62) from AED501 ($136.40) last year.

Did you like this story?
Click here for more

ADR for the month of March was AED498 ($135.58) in comparison to AED562 ($155.73) last year. RevPAR dropped to AED417 ($113.53) from AED488 ($132.86) last year.

Explaining why these numbers are low, in a previous interview, TRI’s Philippe Vercruysse told Hotelier Middle East, “The decline in ADRs in Dubai is primarily driven by the increase in supply coupled with only marginal growth in visitor arrivals. As such, hoteliers are resorting to discounting their rates in order to continue attracting their fair share of demand.”

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular

Newsletter

Reports

Human Capital Report 2017

Human Capital Report 2017

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people. The report combines the results of Hotelier Middle East's HR Leaders Survey with exclusive interviews with the region's senior human resources directors.

Hotelier Middle East Housekeeping Report 2016

Hotelier Middle East Housekeeping Report 2016

The Hotelier Middle East Housekeeping Report 2016 provides essential business insight into this critical hotel function, revealing a gradual move towards the use of automated management and a commitment to sustainability, concerns over recruitment, retention and staff outsourcing, and the potential to deliver much more, if only the industry's "image problem" can be reversed.

From the edition

From the magazine