Abu Dhabi's hotel occupancy drops along with ADR, RevPAR

The number of rooms sold in the market fell 10.3% year over year

Image used for illustrative purpose
Image used for illustrative purpose

According to data from STR, Abu Dhabi’s hotel performance has recorded a drop in its average daily rate (ADR), revenue per available room (RevPAR) and occupancy rates for the month of May 2019.

Occupancy dropped by 14.9% to 52.2%, while ADR dropped by 4.4% to AED335.39 ($91.30) RevPAR fell by 18.6% to AED175.10 ($47.67).

In Q1 of 2019, the emirate’s hotel performance was on a rise, with average room revenue increasing by 15%, occupancy rates shooting up by 79% and RevPAR increased by 24.5%.

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Speaking about May’s performance, STR analysts attribute the decline to “supply growth and the negative side of the Ramadan calendar shift”.

They said: “The market sees less business during the holy month, and while a majority of hotels ran special Ramadan offers to help stimulate demand, the number of rooms sold in the market fell 10.3% year over year. Supply, however, jumped 5.3%.”

Also read: ADR rises, RevPAR, occupancy drops across Middle East hotels in May.
Also read: Makkah hotels record 67.6% rise in ADR, 118.7% increase in RevPAR for May 2019.

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