June demand for Abu Dhabi hotels set to hit four-year high

Demand for hotels in Abu Dhabi in June is set to hit a four-year high, according to hospitality analysts STR.

Its preliminary June 2018 data for the UAE capital indicated strong demand growth of nearly 11 percent, the highest June demand since 2014.

June is traditionally a slower month for hoteliers in the region as summer temperatures soar above what most tourists find comfortable.

Based on daily data from June, Abu Dhabi reported supply growth of 4.2 percent against demand growth of 10.9 percent.

Hotel occupancy rose 6.4 percent to 53.8 percent while average daily rate (ADR) fell by 4.5 percent to AED318.12 and revenue per available room (RevPAR) increased by 1.6 percent to AED171.31.

The year-over-year demand increase was boosted by an earlier Eid al-Fitr, STR analysts noted, adding that the decrease in ADR is consistent with significant supply growth as hoteliers charge less for rooms in an effort to maintain occupancy levels.

Absolute RevPAR levels in Abu Dhabi have remained well below historical averages primarily due to lower ADR, the data also showed.