Dubai hotels’ RevPar, ADR drop for fourth consecutive month

Dubai hotels’ RevPar, ADR drop for fourth consecutive month
Image used for illustrative purpose only
Published: 9 June 2019 - 11 a.m.
By: Priyanka Praveen
Hotels in Dubai registered a drop in revenue per available room (RevPAR) and average daily rate (ADR) for the fourth consecutive month in 2019.

According to figures revealed by Dubai Tourism, the average daily rate in April 2019 was AED493 ($134.22) in comparison to AED552 ($150.29) for the same period last year. Meanwhile, RevPAR was down to AED412 ($112.17) from AED475 ($129.32) last year.

However, occupied room nights increased from 10.96 million in April 2018 to 11.52 million in April 2019.

Dubai hotels’ performance indicators have been low since the start of the year. Figures by Dubai’s Tourism Ministry revealed that hotels here recorded a drop of 11.3% in their average daily rate while revenue per available room fell by 14.55% in Q1 of 2019.

In January alone, ADR dropped to AED529 ($144.02) from AED592 ($161.18) last year, while RevPAR dropped to AED437 ($118.98) from AED520 ($141.57). Meanwhile. February’s ADR was AED513 ($139.67) a drop from AED574 ($156.28) in 2018, while RevPAR dropped to AED432 ($117.62) from AED501 ($136.40) last year.

ADR for the month of March was AED498 ($135.58) in comparison to AED562 ($155.73) last year. RevPAR dropped to AED417 ($113.53) from AED488 ($132.86) last year.

Explaining why these numbers are low, in a previous interview, TRI’s Philippe Vercruysse told Hotelier Middle East, “The decline in ADRs in Dubai is primarily driven by the increase in supply coupled with only marginal growth in visitor arrivals. As such, hoteliers are resorting to discounting their rates in order to continue attracting their fair share of demand.”

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