The Abu Dhabi hotel market continues to gain momentum with 4- and 5-Star hotels reporting positive gains in performance levels for the month of September compared to the same period last year, according to the latest HotStats.
Average room rate (ARR) increased by 4.2 percent to $128.96 while occupancy grew by 6.6 percentage points to 76.6 percent, resulting in RevPAR rising 14 percent to $98.76. Total RevPAR was impacted by a decline in beverage revenues of 5.3 percent, however the strong room performance led to a 9.4 percent increase over the same period last year to $219.13. The growth in RevPAR directly impacted gross operating profit per available room (GOPPAR), which increased by 42.4 percent to $47.73.
“Abu Dhabi’s hotel market is going from strength to strength with a strong performance in September boosting year-to-date figures,” says Peter Goddard, managing director of TRI Consulting. “The continual increase in occupancy levels to 74.2 percent up to September has allowed hoteliers to drive average room rates for the first time higher than 2013 levels. We project this upwards trajectory to continue as the city braces itself for the high season with notable events such as the Formula 1 Abu Dhabi Grand Prix and the opening of the much anticipated Yas Mall in November.”
In Egypt’s luxury seaside resort area, Sharm El Sheikh, 4- and 5-Star hotels have also experienced a strong recovery in performance levels during September as RevPAR increased by a record 168.5 percent to $39.15 compared to the same period last year, driven by a 43.5 percentage point growth in occupancy and an 18.2 percent increase in ARR to $50.39. The improvement in top-line revenues resulted in the return of trading profits with GOPPAR increasing to $25.11 from $0.15 during the same period last year.
