Dubai hotels had an electric start to 2013 with occupancies running a shade under 90 per cent and RevPAR (revenue per available room) rising 10.2 per cent to $321.85, according to the latest HotStats survey by TRI Hospitality Consulting in January.
Hoteliers benefited from the month-long Dubai Shopping Festival and high in-flows of tourists, particularly from Europe. Average room rates (ARR) grew five per cent to $359.39 and GOPPAR (gross operating profits per available room) rose 14.5 per cent to $279.30, in the 220-property sample of of full service four- and five-star hotels.
Hotels in supply-rich Abu Dhabi also benefitted from overflow demand as regional and international travellers tagged on trips to the capital in their itineraries, although ARR levels dropped a further 10.7 per cent to $167.77.
Kuwait hotels registered a 6.1 per cent occupancy increase to 58 per cent, fuelled by corporate and leisure demand, and ARR increased 10.2 per cent to $273.54, lifting RevPAR 23.3 per cent to $155.58.
In Egypt, reduced rates and attractive packages lured more visitors. Hotels in Sharm El Sheikh saw occupancy increase 9.3 per cent to 57.2 per cent and ARR increase 9.8 per cent to $49.11, boosting RevPAR up by 31.1 per cent to $28.10, while Cairo hotel occupancies improved 5.9 percentage to 43.7 per cent and ARR grew 4.3 per cent to $110.75 in January – which benefited from the Nile festival.
Saudi saw a blip with Jeddah’s occupancy down 3.7 per cent to 72.7 per cent, despite the annual Hayya Jeddah Shopping Festival, and Riyadh hotels also saw occupancy drop marginally by 1.3 per cent to 60.3 per cent as the week-long holiday for the Prophet’s birthday took its toll on corporate demand.