(MENAFN- Khaleej Times) Hotels in Dubai reported strong growth in revenues and profits while hotels in Abu Dhabi continued to report drop in rates and profits in May 2012, according to the latest survey by TRI Hospitality Consulting.
The HotStats survey, conducted in six Middle East and North African cities, said revenue per available room, or RevPAR, in Dubai increased 9.6 per cent to $195.47 in May driven by a 6.5 per cent growth in average room rate (ARR) to $247.96. In terms of profits, gross operating profit per available room (GOPPAR) for the month saw a growth of 12.4 per cent to $145.93.
The emirate's hotels also recorded a nominal increase of 2.3 percentage point in occupancy to 78.8 per cent compared to the same month last year as corporate demand replaced by the leisure segment, which is attracted to the discounted rates and packages offered during the summer season.
"The strength of Dubai's hotel market was once again shown in May with hotels improving in all areas of performance, especially with occupancy increasing to 78.8 per cent," Peter Goddard, managing director of TRI Hospitality Consulting in Dubai, said in an e-mail statement to Khaleej Times on Wednesday.
The Mena chain hotels sample for the survey was composed of 84 hotels with an average hotel size of 330 bedrooms in four and five-star segments. The survey was conducted in full-service hotels of Dubai and Abu Dhabi (UAE); Riyadh and Jeddah (Saudi Arabia); and Cairo and Sharm El Sheikh (Egypt).
Goddard said the spending power of visitors at Dubai hotels was highlighted by a 9.7 per cent increase in total revenue per available room (TRevPAR) to $372.21, driven by a 24.7 per cent increase in food and beverage spend to $147.93, accounting for 39.7 per cent of TRevPAR.
"Although historically the summer months result in lower occupancies in the GCC, we believe Dubai will continue to attract high demand as the leisure segment particularly from Saudi Arabia and Kuwait, and some demand from Europe who exploit the attractive rates and packages on offer during this period," Goddard added.
Nasser Shams, director sales and marketing, HUES Boutique Hotel Dubai, said the occupancy in the UAE is reaching at a good level while average daily rates are climbing. "We see a positive and continued growth in the region's tourism industry," he said.
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