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Hotels in Dubai and Kuwait Post Strong Results
October was quite a profitable month for hotels in Dubai, the United Arab Emirates. The newest data from TRI Hospitality Consulting proves that hotels in the region reached both the growth in demand and profits. Unlike its more successful neighbour, Abu Dhabi hotels were not so positive and their performance showed a further decline.
The average occupancy of 4- and 5-star hotels in Dubai reached the level of 87.1%. This is 5.7% higher than during the same period of the previous year. One of the main reasons for such growth was the fact that both international and domestic travellers arrived in Dubai in order to participate in Eid celebrations. Subsequently, the average room rate also grew by 7.5% and reached US$347.25. This made RevPAR increase by 15% and estimate US$302.3. Finally, gross operating profit showed a tremendous growth of 20% to US$258.6. During the holidays, almost half a million of travellers visited hotels in Dubai.
The key performance indicators of Abu Dhabi hotels are much below. The occupancy dropped by 5.6% to 75.5%, and the average daily rate declined by 11.4% to US$145. Because of these, RevPAR was down by 17.5% (US$109.5). Even though the city was visited by more leisure travellers in October, their number was not sufficient enough to make hotel rates go up. Subsequently, the gross operating profit was down by 26.7% to US$94.
October was also a good month for hotels in Kuwait. Their occupancy added 4% (63.2% in total), and the average room rate added even more – 6.9% to US$323.5. Subsequently, such a growth of the figures boosted RevPAR by 14.1%. Many Kuwaiti families, as well as families from Saudi Arabia, decided to spend Eid holidays in the city-state, and this fact helped to boost food and beverage revenues. All revenues associated with banqueting and conferences also showed the growth of almost 30%. As a result, the gross operating profit added 43.2% in October and estimated US$237.02.
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