UAE hotels post double-digit growth

Hotels across the UAE recorded increased occupancy in July following the end of Ramadan, with Dubai and Abu Dhabi hotels registering double-digit growth in revenue per available room (RevPar).

Four and five star hotels in Dubai experienced a significant increase in performance levels in July compared to the same period last year, as Ramadan was split between July and June this year, according to HotStats Mena Chain Hotels Market Review - July 2015.

"Despite a marginal decline in average room rate (ARR) by 1.1 per cent to US$200.77, hoteliers in the city were able to capitalise on higher demand levels as occupancy grew by 9.9 percentage points to 60.2 per cent. As a result, RevPar recorded a double-digit growth of 18.3 per cent. However, total revenue per available room (TRevPar) was partially weighed down by softer food and beverage demand," said the report.

The increase in room revenues coupled with an 8.7 percentage point reduction in operating costs drove a significant rise in bottom line performance as operating profit per available room (GOPPAR) grew from US$0.07 to US$36.52, the HotStats report said.

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Abu Dhabi Hotels reported a 27.2 per cent growth in RevPar to US$73.01 in July, driven by a 10.5 percentage point rise in occupancy levels to 60.8 per cent. The improvement in RevPar can also be attributed to ARR growth of 5.2 per cent to US$120.05.

The rise in room revenues helped offset the decline in food and beverage sales during the month and translated to a 19.9 per cent increase in TRevPar. A growth in overall revenue helped hotels in the city increase GOPPAR to US$11.40.

Four and five star hotels in Doha continue to benefit from the strengthening demand in the city's hotel market. Occupancy levels rose 2.7 percentage points to 49.8 per cent in July, fuelling a marginal 1.5 per cent increase in ARR to US$199.76 and subsequent 7.3 per cent rise in RevPar.

A stronger food and beverage demand boosted TRevPar, which grew 11.9 per cent to US$238.43. The increase in total revenues had a direct flow through to the bottom line with GOPPAR increasing 10 per cent to US$56.67.

Jeddah hotels witnessed a 6.5 percentage point increase in occupancy to 80.9 per cent in July, allowing hoteliers to yield a 3.5 per cent rise in ARR to US$315.00, driving a 12.5 per cent growth in RevPar to US$254.67. Softer food and beverage revenues had an impact on TRevPar performance, yet it attained a 2.7 per cent growth over last year.

Despite a minimal increase in operating expenses, the profitability of Jeddah hotels mimicked the growth in RevPar with GOPPAR expanding 2.8 per cent to US$197, the HotStats report noted.

Occupancy levels in Cairo hotels rose by 15.5 percentage points to 44.8 per cent in July as the Egyptian capital witnessed a revival of group travel. Complemented by a 20.8 per cent increase in ARR to US$128.90, hotels in the city recorded an 84.9 per cent growth in RevPar to US$57.8 compared to the same period last year.

The surge in room demand boosted TRevPar, which saw a 71.1 per cent growth to US$110.67. Along with a 10.8 percentage point reduction in payroll, hotels in the city witnessed a significant increase in GOPPAR to US$48.22.