In 2017, hotels in Dubai were recorded with highest occupancy rates in comparison to other markets in the Middle East and North Africa (Mena) at 77.7 percent, with hotels in Abu Dhabi closely following at 77.1 percent.
As per the recent report from advisory EY, the hospitality market of Dubai is also registered with highest revenue available per room of $189 in last year, followed by Jeddah where revenue per room reached $170 (Dh624).
In spite of the strong revenue available per room in Dubai, on a year-on-year basis, this was lower, with Dubai witnessing a drop of 6.2 percent in comparison to 2016 as Abu Dhabi hotels saw a 2.6 percent drop year-on-year in revenue per available room.
In Dubai, average room rates dropped by 4.4 percent to reach $243 in 2017 as well. The occupancy rates dropped at 1.4 percentage points. EY called the decline in performance indicators to the additional supply of hotel rooms in Dubai.
In the meantime in Abu Dhabi, occupancy rates witnessed a rise of 2.2 percentage points over 2016, as average room rates dropped 5.3 percent year-on-year to $120.
In Saudi Arabia, the highest room rates of the year were recorded with an average daily rate of $300 in Makkah, as in Jeddah, rates averaged around $266.
Yousef Wahbah, Mena real estate, hospitality, and construction sector leader at EY, explained that the declaration of numerous mega projects and government initiatives in the region will help drive tourism this year.
“In the UAE, the growth in hospitality supply will be sustained by an increase in occupancy through demand from existing markets and new source markets,” he said.
