- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
Despite heavy competition, average daily rate (ADR) levels of Abu Dhabi hotels increased for the first time since 2010 to reach approximately $169 (Dh621), reflecting a year-on-year increase of 12 per cent in February, according to advisory firm JLL. Occupancy rates witnessed a far lower rate of growth, reaching 77 per cent in the first two months this year, just one percentage point higher than last year.
The combined growth of ADR levels and occupancy rates pushed the revenue per available room up by 14 per cent to reach approximately $132. According to JLL, the hospitality and residential rental sectors recorded growth in the first quarter, while the residential sales, retail and office sectors remained stable.
JLL further reported that two major openings occurred in the first quarter, Tryp by Wyndham (146 keys) and Swiss-Belhotel Corniche (189 keys). Additionally, 500 keys were added to the serviced apartments sector with the opening of the Meera Time Residence in Saraya and Danat Residences in Danet Abu Dhabi.
“The Abu Dhabi hotel sector saw an increase in ADRs for the first time since 2010, as demand outpaced supply expansion,” said David Dudley, Regional Director and Head of Abu Dhabi Office at JLL Middle East and North Africa.
“The growth in hospitality demand is largely driven by a range of ongoing government initiatives to grow tourism demand — including the expansion of Etihad Airways and the airport, further enhancement of the city’s leisure offerings, and campaigns by the Abu Dhabi Tourism and Culture Authority to promote Abu Dhabi regionally and globally.
"Occupancy rates have been increasing over recent years, [and have] now reached 77 per cent.”
Source: Proprty Weekly