Hotels

Abu Dhabi Hotel Revenue Falls

Abu Dhabi hotels revenue dropped last month for the first time in more than a year demonstrating that the global financial crisis and weaker tourism demand is impacting the capital.   According to STR Global data, Abu Dhabi RevPar decreased 6.9% to $249.53 last month compared to $267.90 last April. Occupancy levels also fell to 80.3% down from 88% last April. However, average room rates increased 2% in April.

Rob O’Hanlon, a partner with “Deloitte Tourism Hospitality, and Leisure attributed the fall in RevPar to a slowdown in demand from the feeder markets.   He said “The majority of markets are actually feeling that and Abu Dhabi is getting its share.”  O’Hanlon said the slowdown in Abu Dhabi is minor compared to other international destinations because of the limited supply of hotel rooms.   He said this will help the market recover more quickly when global demand returns.

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