Monthly performance indicators for Abu Dhabi hotels outdid last year's figures, as tourists flocked to the capital for a number of conferences hosted by the capital city including the International Defence Exhibition (IDEX) which attracted some 10,000 international visitors.
Hotels in Abu Dhabi saw a 10.0% growth in average room rates to $203.3, which, coupled with the 18.6 percentage point increase in occupancy to 80.8% resulted in 43.0% increase in Revenue per Available Room (RevPAR) to $164.20.
Conference-driven demand boosted Total Revenue per Available Room (TRevPAR) 36.4% to $323.95, growing Gross Operating Profit per Available Room (GOPPAR) 72.9% to $126.21.
Elsewhere, in Sharm el Sheikh, performance indicators peaked as European tourists targeted the coastal strip during winter holidays.
Affordable package deals, pleasant weather conditions and political stability helped boost tourist confidence in the destination increasing occupancy rates across surveyed four and five star hotels by 7.7 percentage points to 56.8%, however a strong dependency on leisure demand keeps ARR and RevPAR figures subdued at $40.78 and $23.13 respectively, the lowest across the surveyed region. Increases in F&B revenues, coupled with a 52.9% increase in meeting room revenues aided a 27.3% increase in TRevPAR to $47.93, allowing a 71.29% increase in GOPPAR to $15.27.
Hotels operators in Cairo capitalized on the 0.5 percentage point increase in occupancy to 42.5%, with a 10.9% increase in ARR to $112.69, boosting RevPAR 12.3% to $47.96. A spike in leisure demand, attributed to European travellers taking advantage of reduced price packages combining Cairo and Sharm el Sheikh, boosted TRevPAR 6.5% to $87.87, however cairo's hefty payroll percentage keeps GOPPAR stunted at $33.7.
"A number of conferences held in Abu Dhabi have helped boost occupancy across hotels lifting performance indicators to record numbers in the past year, as operators strive to monetize steadily increasing demand. Meanwhile Sharm el Sheikh's peak season continues to attract visitors, particularly UK nationals who benefited from the week long holiday mid-February to escape harsh winter conditions at reasonable prices. Package deals to Egypt often incorporate a number of nights in Cairo, allowing hotels in the capital a stake in budding revenues," Commented Peter Goddard, Managing Director at TRI Hospitality Consulting in Dubai.
Hotels in Dubai continue to outperform regional counterparts, Riyadh market remains stagnant.
Hotels in Dubai maintained strong performance throughout the month of February, as the city hosted a plethora of events attracting international travellers, lifting occupancy 5.3 percentage points to 90.1%. Dubai hotels maintained the highest Average Room Rate (ARR) in the region at $334.79, and Revenue per Available Room (RevPAR) grew 10.3% to $301.7.
An increase in leisure demand in the city grew food and beverage revenues 9.3% and 9.5% respectively, boosting Total Revenue per Available Room (TRevPAR) 11.0% to $523.86. Controlled payroll costs allowed hotels in dubai to register a 12.7% increase in Gross Operating Profits per Available Room (GOPPAR) to $261.08, the highest in the region.
Hotels in Jeddah registered growths across performance indicators despite a 1.3 percentage point slump in occupancy to 78.2%, ARR grew 11.2% to $237.37 allowing a 9.4% increase in RevPAR to $185.69. A growth in leisure demand which boosted food and beverage revenues throughout the month made for a 9.4% increase in TRevPAR to $298.83, increasing GOPPAR 10.8% to $135.61.
"Dubai continues to be the star player in the regionas both corporate and leisure demands remain at their peak throughout the month of February. The city plays host to copious sporting events, conferences, and festivals which have resonated internationally thereby attracting record numbers of travellers yearly," Commented Peter Goddard, Managing Director at TRI Hospitality Consulting in Dubai.
Riyadh's hotel performances remained stable when compared with last year performances in spite of a small increment in occupancy, increasing 3.0 percentage points to 74.3, ARR witnessed a 3.3% decline to $250.48. RevPAR across surveyed properties increased 0.8% to $185.97, and TRevPAR grew 1.5% to $299.39 lifting profits a meagre 0.1% to $173.81.
In Kuwait, hotels registered a 6.4 percentage point increase in occupancy to 60.0% as a slight dip in conference demand is masked by an increase in both corporate and leisure demand. ARR increased 7.5% to $273.92 lifting RevPAR 20.4% to $164.27. The Hala February 2013 festival, which catalysed domestic tourism, also aided a 46.6% increase in F&B revenues across four and five star hotels surveyed which grew TRevPAR 23.8% to $350.43, boosting bottom line revenues 34.9% to $161.97.
"Riyadh's hotel market, mainly fuelled by corporate demand, has maintained performance levels similar to that of 2012, a lack of demand generators in the city keep variations in performance at bay. On the other hand, hotels in Kuwait have benefitted from the yearly Hala February festival which boasts numerous cultural events encouraging local spending and increasing food and beverage revenues. The city also celebrated its national day during the month of February, further boosting hotel performances as residents took advantage of an extended weekend to vacation in the city," Commented Goddard.
