abu dhabi revenue decline

Hotels in Abu Dhabi were unable to offset the decline in revenue across the major operating departments in May despite significantly reducing both overhead and labour costs, according to latest data from HotStats.

As a result, year-on-year profit per room for hotels in the UAE emirate dropped by 6.9%, figures showed.

The survey results showed that in addition to a 3.7% drop in revenue per available room (RevPAR), a decrease in food and beverage (-11.1%) as well as conference and banqueting (-25.4%) revenue on a per available room basis, contributed to a 7.8% decline in total revenue per available room (TrevPAR) in May.

While savings were made in labour (-8.5%) and overhead (-4.8%) costs, hotels in Abu Dhabi suffered further year-on-year declines in profit per room in 2016 and year-to-date.

Gross operating profit per available room (GOPPAR) has now fallen by 11.5% to US $83.61. Despite this, hoteliers are still maintaining a respectable 33.4% profit conversion, revealed the HotStats statement.

The survey also said that hotels in Jeddah recorded a 47.6% year-on-year uplift in profit per room in May as high volume levels as a result of key events enabled hoteliers to leverage top line performance.

Read rest of the article at Hotelier Middle East