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Demand continues to grow quarteron-quarter in Abu Dhabi’s hospitality sector, principally driven by wide-ranging government initiatives to increase tourism, according to JLL’s Real Estate Market Overview.
“The general trend for the second quarter and the first half of 2015 has been stability, with performance of most sectors remaining flat, and a slight increase in hospitality performance,” said David Dudley, International Director and Head of Abu Dhabi Office at JLL Middle East and North Africa.
The number of hotel guests who checked into Abu Dhabi hotels in the first four months of the year was up by 20 per cent compared with the same period last year, as per figures from the Abu Dhabi Tourism and Culture Authority. Authorities expect number of guests to reach 3.9 million this year.
“In recent years, while there has been a steady increase in tourism arrivals, the positive increase in demand was largely offset by new supply, impacting performance,” said Dudley. “The pace of supply additions is now slowing down while demand growth continues quarter-on-quarter.”
The second quarter saw the soft opening of the 318- key Burj Al Sarab, while the only noticeable change in the serviced apartment market was the grand opening of Danat Residences in April. “Major openings expected for the coming months are the Millennium Bab Al Qasr with 677 keys, Grand Hyatt with 368 rooms and the 315-room Marriott paired with Marriott Executive Apartments,” JLL said in a statement.
In a related report about the capital’s hospitality sector, CBRE revealed that average daily rates were up around 4 per cent year-todate. “While occupancy rates were down around 1 per cent, overall performance is seen to be quite healthy given the slowdown in government activity,” CBRE said in a statement. “This has been aided by relatively constrained new hotel supply in recent years, a trend which will continue in the short to medium term with just over 5,000 new rooms to be completed by 2018.”
Source: Property Weekly