Abu Dhabi hotel occupancy slows in Q1
Despite the ongoing increase in supply, Abu Dhabi hotels witnessed an increase in occupancy levels during the first quarter of the year, registering a 5 per cent jump to 79 per cent, JLL’s Q1 2018 Real Estate Market Overview Report revealed.
According to the Abu Dhabi Tourism & Culture Authority, the number of guests staying at hotels in the emirate earlier this year rose by 15 per cent (compared to Q1 2017) to reach 405,850. This increase was in part driven by visas now being granted on arrival for Chinese visitors, Abu Dhabi’s largest overseas source market, ahead of India and the UK.
“With the UAE now undertaking increased business with China, the hospitality sector has witnessed positive sentiment,” said Peter Stebbings, Head of Abu Dhabi operations.
“The notable increase of Chinese visitors is supported by Abu Dhabi’s Department of Culture and Tourism Authority’s investment into Baidu, the Chinese equivalent of Google, which commenced in Q4 of 2017. Attractions such as the opening of The Louvre Museum continued to boost visitor numbers from France” he added.
Hospitality ADRs, however, continued to decline due to increased supply, dropping 16 per cent to $117 in Q1 compared to the same period in 2017. Consequently, RevPAR dropped by 12 per cent to reach $92 in the year-to-February 2018 compared to the same period last year. The drop in RevPAR is attributed to the International Defence Exhibition & Conference (IDEX) not being held this year as this exhibition has historically had a positive impact on performance in this period.
Total hospitality inventory reached 22,000 in Q1 with the completion of Rotana Saadiyat Beach Hotel and Pearl Rotana Capital Centre. Approximately 1,400 keys remain to be delivered by the end of 2018 including Fairmont Marina, Beach Arjan by Rotana, and Edition Al Bateen Harbour Hotel. - TradeArabia News Service