Abu Dhabi Hotels reported a 27.2% growth in revenue per available room (RevPAR) to US$73.01 in July, driven by a 10.5 percentage point rise in occupancy levels to 60.8%. The improvement in RevPAR can also be attributed to an average room rate (ARR) growth of 5.2% to US$120.05.
The rise in room revenues helped offset the decline in food and beverage sales during the month and translated to a 19.9% increase in total revenue per available room (TRevPAR). A growth in overall revenue helped hotels in the city increase gross operating profit per available room (GOPPAR) to US$11.40.
Four and five star hotels in Dubai experienced a significant increase in performance levels for the month of July compared to the same period last year, as Ramadan was split between July and June this year.
Despite a marginal decline in ARR by 1.1% to US$200.77, hoteliers in the city were able to capitalize on higher demand levels as occupancy grew by 9.9 percentage points to 60.2%. As a result, RevPAR recorded a double digit growth of 18.3%; however, TRevPAR was partially weighed down by softer food and beverage demand.
Nonetheless, the increase in room revenues coupled with an 8.7 percentage point reduction in operating costs drove a significant rise in bottom line performance as GOPPAR grew from US$0.07 to US$36.52.
Doha and Jeddah hotels see performance levels strengthen
Four and five star hotels in Doha continue to benefit from the strengthening demand in the city’s hotel market.
Occupancy levels rose 2.7 percentage points to 49.8% in July, fuelling a marginal 1.5% increase in ARR to US$199.76 and subsequent 7.3% rise in RevPAR.
A stronger food and beverage demand boosted TRevPAR which grew 11.9% to US$238.43.
The increase in total revenues had a direct flow through to the bottom line with GOPPAR increasing 10.0% to US$56.67.
Jeddah hotels witnessed a 6.5 percentage point increase in occupancy to 80.9% in July, allowing hoteliers to yield a 3.5% rise in ARR to US$315.00 driving a 12.5% growth in RevPAR to US$254.67. Softer food and beverage revenues had an impact on TRevPAR performance, yet it attained a 2.7% growth over last year.
Despite a minimal increase in operating expenses, the profitability of Jeddah hotels mimicked the growth in RevPAR with GOPPAR expanding 2.8% to US$197.00.
Increasing room rate drive profit growth in Cairo hotels
Occupancy levels in Cairo hotels rose by 15.5 percentage points to 44.8% in July as the Egyptian capital witnessed a revival of group travel.
Complemented by a 20.8% increase in ARR to US$128.90, hotels in the city recorded an 84.9% growth in RevPAR to US$57.80 compared to the same period last year.
The surge in room demand boosted TRevPAR, which saw a 71.1% growth to US$110.67. Along with a 10.8 percentage point reduction in payroll, hotels in the city witnessed a significant increase in GOPPAR to US$48.22.
Report available at: HOTSTATS