Dubai hotels post highest Q1 average daily rate
dubai — For the 12th consecutive year, Dubai recorded 2016’s highest first-quarter average daily rate, or ADR, among major markets around the world, 2016 data from STR shows.
Even with a 10.1 per cent drop in year-over-year comparisons, Dubai’s ADR for first quarter 2016 was $234.88. Only three other major markets finished the quarter with ADR levels above $200 in constant currency: Paris, New York and Singapore.
“January through March is typically a slower time for other popular markets like New York, London and Paris,” said Philip Wooller, STR’s Middle East and Africa area director. “But these are peak months for Dubai, as temperatures are more moderate, drawing in visitors from around the world. Dubai also has been one of the top five markets for year-end ADR levels every year since 2002, proving itself as the premier hotel market in the Middle East and as one of the top hotel markets in the world.”
During the first quarter, Dubai’s performance was helped by major events including the Omega Dubai Desert Classic, the Dubai Duty Free Tennis Championship, the Dubai World Cup, the Dubai International Boat Show, Gulfood and the Arab Health Exhibition & Congress.
According to figures released by Dubai’s Department of Tourism and Commerce Marketing, Dubai welcomed a record 4.1 million tourists during the first three months of the year, up 5.1 per cent compared to the same period in 2015. The GCC remained the top feeder market for Dubai, accounting for 25 per cent of the total number of visitors during the first quarter of the year. Hotels in the Middle East reported negative results, while hotels in Africa reported mixed results for the three key performance metrics when reported in US dollar constant currency, according to first quarter data from STR.
Compared with the first quarter of 2015, the Middle East reported a 3.3 per cent decrease in occupancy to 71.9 per cent. ADR for the quarter was down 8.1 per cent to $188.55. Revenue per available room dropped 11.1 per cent to $135.63.
The Northern Africa and Southern Africa subcontinents experienced a 4.4 per cent decrease in occupancy to 53.5 per cent. However, average daily rate was up nine per cent to $107.58, and RevPAR increased 4.2 per cent to $57.56.
Jeddah reported decreases across the key performance metrics: occupancy (-9.9 per cent to 67.3 per cent), ADR (-5.0 per cent to SR868.76) and RevPAR (-14.4 per cent to SR584.42). Occupancy and ADR during the quarter were hurt by a 4.2 per cent increase in supply. At the same time, demand dipped 6.1 per cent, and the pipeline in the market remains robust.
However, compared with March 2015, the Middle East subcontinent reported a 0.4 per cent decrease in occupancy to 75.4 per cent. Average daily rate for the month was down 6.1 per cent to $188.06. Revenue per available room dropped 6.5 per cent to $141.74.