According to the latest data which was released by STR, the initial data of Abu Dhabi hotels highlighted that as a result of an increase in supply, demand has outstripped by 1.5 percent (whilst room occupancy was down -1.4% to -74.2%.
Findings from STR (a data analytics service headquartered in London, England), is known to be authentic and is based on daily data from January 2017.
The preliminary data indicates sharp rate declines, including a drop of -10 percent in the city’s average daily rate (ADR) to Dh 465.80.
In addition to the fall in ADR, the revenue per available room (RevPAR) slipped by -11.2% to Dh345.68.
STR further found that Abu Dhabi’s ADR levels were up as a result of pressures by the growth of supply in the market. With regards, the market’s hotels did record a significant uptick in RevPAR (+23.6%) on the last day of the month, mainly due to the Global Space Congress (January 31-February 1).
The situation in Abu Dhabi is the same as Dubai’s – a number of new hotels in 2016 coupled with slower demand pushing hotels’ profits down 6.8 per cent year-on-year.
By June 2016, the profit per room of hotels in Dubai suffered under the pressure of this additional supply, falling by 13.2 percent. This was caused by a declining RevPAR, which dropped by 11.3 percent.