UAE’s Hotel Market Growth in May


United Arab Emirates’ two key cities, Dubai and Abu Dhabi, demonstrated a growth in their hotel sectors. According to HotStats’ latest MENA Chain Hotels Market Review. UAE’s capital enjoyed a rise in occupancy levels with 14.7%. In addition, the gross operating profit per available room (GOPPAR) in Abu Dhabi increased with the unbelievable 31.6%. Dubai saw a GOPPAR growth that was nearly as impressive – 30.9%.

This May, the hotel revenue per available room (RevPAR) in Abu Dhabi’ hotels jumped with 15.1%. That was mainly due to the fact that occupancy in the city increased with 14.7% reaching 72.1%. Despite that, however, the average room rates (ARR) are still decreasing. Only in May, they fell with over 8% to less than $125. Still, the total revenue per available room (TrevPAR) jumped with over 12%. That was the key factor which pushed the hotel sector’s GOPPAR in Abu Dhabi up with 31.6%.

Tendencies in Dubai were also positive. The emirate’s hospitality industry greatly benefited from the various international events which were held in the city this May. Among them were the Dubai Airport Show and Africa Global Business Forum. Together, they managed to lure about 10,000 people. In addition, the Arabian Travel Market, as well as the International Design Exhibition attracted an audience that amounted to about 40,000 people. Consequently, Dubai’s average room rates increased with 8.5%, hitting more than $280. The occupancy in the city’s hotels grew with 6.6% and it reached nearly 84%. In addition, the gross operating profit per available room marked a growth of 30.9% amounting to a total of $192.73. Also the TrevPAR was estimated at almost $440 after a jump of 14.9%.

According to the report, both Abu Dhabi and Dubai showed a strong and stable overall performance in May. Te study concludes that hotel revenue per available room in Abu Dhabi has been registering an improvement over the last few months. This rise is explained with the growth in occupancy rates in the city’s hotels. Moreover, HotStats has found that they have finally returned to their levels witnessed before the crash.

The hotel market in Dubai, on the other hand, was more influenced by the events that took place the emirate, as well as the increased leisure demand in the city.


Please enter your comment!
Please enter your name here