Four and five star hotels in Dubai saw average room rates (ARR) fall by 5.5% to US$380.85 in March, according to the latest data from HotStats.

Occupancy levels remained stable during the month at 88.8%, however the reduction in ARR had a flow-on effect on revenue per available room (RevPAR) which fell by 4.8% to US$338.25. A reduction in food and beverage revenues further reduced total revenue per available room (TRevPAR) which dropped by 8.9%.

Although operational expenses were marginally reduced, the lower overall revenues resulted in gross operating profit per available room (GOPPAR) falling by 7.8% to US$306.62.

Conversely, hotels in the neighbouring Abu Dhabi recorded a 6.5% growth in ARR to US$167.62 as the market capitalised on strong visitor demand with hotels in the Emirate achieving an average occupancy level of 83.9%, an increase of 1.3 percentage points on the same period last year.

The strong rate performance boosted RevPAR levels and offset a reduction in food and beverage revenues, allowing TRevPAR to rise by 4.1% to US$287.50. As a result of stronger revenues, GOPPAR levels increased by 2.2% to US$107.53.

Beirut and Sharm El Sheikh hotels witness a boost in occupancy on the back of strong demand

Hotels in Beirut saw occupancy levels increase by 17.5 percentage points to 57.9% as the city saw a rise in visitor numbers. The growth in demand allowed hoteliers to yield higher ARR’s, which grew by 6.1% to US$143.77 and drove a significant increase in RevPAR of 52.0% to US$83.24. However, the increase in rooms revenue was not enough to reverse a large reduction in food and beverage demand and TRevPAR fell by 15.0% compared to the same period last year.

The four and five star hotels in Sharm El Sheikh continued to benefit from a revival in tourism activity to the Red Sea destination. Occupancy levels rose 9.3 percentage points during March, fuelling a 25.2% increase in ARR to US$43.57, and a subsequent 47.0% rise in RevPAR.

Softer food and beverage demand had a marginal impact on the growth in total revenue, however significantly lower operating expenses helped to deliver a GOPPAR increase of 68.6% to US$14.11.

Revenues up but profits down in Doha hotels

Strengthening demand and higher ARR’s in four and five star hotels in Doha drove a 6.6% rise in RevPAR to US$185.95 in March. Doha’s increased attraction as a regional tourist and transit hub has resulted in a greater number of visitors to the country, which is having a positive impact on hotel performance.

Although rooms revenue increased during the month, lower food and beverage revenues softened the TRevPAR growth to 3.8%. Higher operational expenses had a significant impact on bottom-line performance as it reversed the increase in overall revenues and drove GOPPAR down by 3.5% to US$180.17.