Hotel room rates in Dubai and Abu Dhabi are set to rise further next year despite the addition of thousands of new rooms as soaring visitor numbers bolster demand.
Some 109 new hotels are in the development pipeline across the Emirates that would add 31,000 rooms to the total stock, according to the latest STR Global data available through November.
Almost half of the new hotels are planned for Dubai, accounting for more than 16,600 rooms. Abu Dhabi is expected to attract 27 openings with more than 7,000 rooms.
The hotels are confident of increased revenue despite the newcomers.
“The rates have stabilised in the UAE market in general and there might be a slight increase in the leisure business moving forward,” said Omer Kaddouri, the executive vice president and chief operating officer of Rotana.
“We are talking about 10 per cent as an average [increase in room rate] and this is due to the very high demand in both markets, specifically in Dubai.”
The Abu Dhabi-based hotel operator, which manages 32 properties across the country, expects to reach an average occupancy of 82 per cent, with an average room rate of Dh800, across the Emirates for the next year.
“The demand is increasing but we will focus our resources on increasing our market share rather than increasing the room rate,” Mr Kaddouri said.
In Abu Dhabi, the revenue per available room rose 10.4 per cent to US$171.70 last month, compared with the same period last year, according to STR Global.
While this month’s rates are not yet available, the rates at the end of the year in Abu Dhabi have gone down for the past couple of years. Last year, room rates for December were $130.60, a fall from $153.20, according to the Dubai-based HotStats Mena as more hotels were completed.
On average, the room rates in the capital last year hovered around $142.90, down from $158.40 in 2011 even though occupancy rates stood around the 70 per cent mark.
A rate recovery is unlikely next year, said Rashid Aboobacker, the senior consultant at TRI Mideast in Dubai. “In Abu Dhabi, although hotel room rates have continued to fall this year, the rate of decline has certainly slowed significantly,” Mr Aboobacker said. “The average room rate fell 5.8 per cent during the 11 months compared to 12.5 per cent drop during the same period last year.”
Expansion of routes by Etihad Airways, strong economic growth and a rise in visitors opting for packages, including Abu Dhabi, will be the main drivers for the hospitality industry in the capital, he said.
UAE hotels are also banking on corporate and tourism events besides Arabian Gulf and Russian school holidays to fill their rooms.
“We expect to see an increase in room rates between 10 and 12 per cent and occupancy rates between 5 and 10 per cent between this year and next,” said Arun Kumar, the resident manager at Dubai’s Al Bustan Centre and Residence.
Currently, the rates at the property start at Dh1,000, and are expected to hold through the Chinese and Iranian new years, and the school holidays before falling to Dh550 for the slowest months around June, he said.
“The overall tourist arrivals and corporate build-up are the main drivers and that will remain the trend,” he added.
The hotel, which has 640 suites, has an occupancy rate of 65 per cent on average year round with almost 70 per cent of the tourists coming from the leisure sector.
The corporate sector comprises the rest. At Arabian Courtyard Hotel & Spa, the average room rates are expected to be around Dh550, which represents an 8 per cent increase, and a four per cent rise in occupancy rate for the next year, said Habib Khan, the hotel’s general manager and chief executive of the hospitality division of Planet Group , which operates the hotel. The hotel had 88 per cent occupancy this year.
“There are a lot of positive indicators such as increase in real estate prices and influx of new residents in the country,” he said.
In Dubai, the hotel room rates grew 7.2 per cent in the first 11 months and occupancy levels stayed at 81.4, Mr Aboobacker said.
“We believe the trend will continue next year, supported by a stronger real estate and construction sector, and the gradual improvement in the economic situations in the main tourism feeder markets such as Europe.”
In Dubai, room rates rose 9.9 per cent to $290.68 in November with the revenue per available room going up by 12.7 per cent to $254, according to STR Global.
Last year, the December rates were $322.90, up from $308.40, HotStats said.
On average, the room rates in Dubai last year hovered around $272, up from $205.50 in the previous year with occupancy of about 80 per cent.
ssahoo@thenational.ae
Brief scores:
Toss: Australia, chose to bat
Australia: 272-9 (50 ov)
Khawaja 100, Handscomb 52; Bhuvneshwar 3-48
India: 237 (50 ov)
Rohit 56, Bhuvneshwar 46; Zampa 3-46
Player of the Match: Usman Khawaja (Australia)
Player of the Series: Usman Khawaja (Australia)
MATCH INFO
League Cup, last 16
Manchester City v Southampton, Tuesday, 11.45pm (UAE)
The specs: 2018 Maserati GranTurismo/GranCabrio
Price, base Dh485,000 (GranTurismo) and Dh575,000 (GranCabrio)
Engine 4.7L V8
Transmission Six-speed automatic
Power 460hp @ 7,000rpm
Torque 520Nm @ 4,750rpm
Fuel economy, combined 14.3L (GranTurismo) and 14.5L (GranCabrio) / 100km
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
Results
5pm: Wathba Stallions Cup Maiden (PA) Dh 70,000 (Dirt) 1,000m, Winner: Hazeem Al Raed, Antonio Fresu (jockey), Ahmed Al Shemaili (trainer)
5.30pm: Handicap (PA) Dh 85,000 (D) 1,000m, Winner: Ghazwan Al Khalediah, Hugo Lebouc, Helal Al Alawi
6pm: Maiden (PA) Dh 70,000 (D) 1,400m, Winner: Dinar Al Khalediah, Patrick Cosgrave, Helal Al Alawi.
6.30pm: Handicap (TB) Dh 70,000 (D) 1,600m, Winner: Faith And Fortune, Sandro Paiva, Ali Rashid Al Raihe.
7pm: Maiden (PA) Dh 70,000 (D) 1,600m, Winner: Only Smoke, Bernardo Pinheiro, Abdallah Al Hammadi.
7.30pm: Handicap (PA) Dh 70,000 (D) 1,600m, Winner: AF Ramz, Saif Al Balushi, Khalifa Al Neyadi.
8pm: Maiden (PA) Dh 70,000 (D) 2,000m, Winner: AF Mass, Tadhg O’Shea, Ernst Oertel.
Keane on …
Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”
Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”
Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”
JAPAN SQUAD
Goalkeepers: Masaaki Higashiguchi, Shuichi Gonda, Daniel Schmidt
Defenders: Yuto Nagatomo, Tomoaki Makino, Maya Yoshida, Sho Sasaki, Hiroki Sakai, Sei Muroya, Genta Miura, Takehiro Tomiyasu
Midfielders: Toshihiro Aoyama, Genki Haraguchi, Gaku Shibasaki, Wataru Endo, Junya Ito, Shoya Nakajima, Takumi Minamino, Hidemasa Morita, Ritsu Doan
Forwards: Yuya Osako, Takuma Asano, Koya Kitagawa
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
U19 WORLD CUP, WEST INDIES
UAE group fixtures (all in St Kitts)
Saturday 15 January: v Canada
Thursday 20 January: v England
Saturday 22 January: v Bangladesh
UAE squad
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly, Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya Shetty, Kai Smith
A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
