Big jump in revenue for Dubai hotels

Hotels in Dubai have reported a strong double-digit increase in revenue per available room (RevPAR) while those in Abu Dhabi have continued on their downward spiral in the first half of the year, according to the latest report by Ernst & Young.

Year to date results of the latest Middle East Hotel Benchmark Survey Report reveal that Dubai hotels achieved a 12.7 per cent increase in RevPAR, but hotels in Abu Dhabi suffered a 11.1 per cent decrease.

Average room rates

In addition, average room rates (ARR) in Dubai in June were up 10.9 per cent compared to those in the capital’s hotels which saw rates fall 12.8 per cent.

Yousuf Wahbah, partner and head of Mena (Middle East and North Africa) Transaction Real Estate, said that Dubai hotels had continued to demonstrate year on year growth, despite having entered the typical low season for tourist travel in most of the Mena region, which will last until the onset of Eid or the beginning of September.

“Even with a negligible increase in occupancy rates compared to last year and despite the fact that hundreds more rooms have been added since June 2011, the overall RevPar [for Dubai hotels] has shown an impressive 11.5 per cent increase since then,” he told

“This is largely on the back of room rates increasing by more than 10 per cent since last year and also due to the increased efficiency in operations in Dubai hotels.

“A true test of their efficiency will be more evident in the RevPar numbers during Ramadan.”