DUBAI: An influx of football fans during the AFC Asian Cup championships boosted the occupancy rate of Abu Dhabi hotels to their highest January levels since 2008, preliminary data from industry monitor STR show.
Occupancy in Dubai hotels meanwhile dipped last month, despite the emirate hosting some of the football matches, as the entry of additional keys into the market pressed rates.
For January, occupancy rates in Abu Dhabi hotels rose 1.9 percent to 78 percent while their Dubai counterparts dipped 5 percent to 82 percent.
“Even with supply growth of 11.2 percent, Abu Dhabi achieved its highest January occupancy since 2008. STR analysts credit a 13.4 percent spike in demand to the Asian Cup football championship,” the industry monitor noted in its report.
Average daily room rates (ADR) in Abu Dhabi rose 5.4 percent to $122.54 during the month, in line with the 7.5 percent increase in revenue per available room (RevPAR) to $95.61. The ADR for Dubai hotels meanwhile was down 10.9 percent to $195.85 while RevPAR was 15.3 percent lower to $160.14.
ADR and RevPAR are common performance metrics in the hotel industry.
On the broader Middle East region, occupancy rate dipped 0.9 percent to 68.2 percent in January while ADR was down 8.9 percent to $154.18 and RevPAR was 9.6 percent lower to $105.16.
“Occupancy and rate declines are to be expected for the market with a significant amount of new inventory in the pipeline ahead of Expo 2020,” STR said. “As of January, Dubai showed 170 projects in construction accounting for 48,759 rooms.”
“At the same time, demand (room nights sold) grew for the fourth consecutive month, and overall performance was solid during the first five days of the month thanks to New Year’s celebrations as well as Arabplast international trade exhibition.”
Asian football cup boosts Abu Dhabi hotel occupancy rates
Asian football cup boosts Abu Dhabi hotel occupancy rates
- For January, occupancy rates in Abu Dhabi hotels rose 1.9 percent to 78 percent
- ‘Even with supply growth of 11.2 percent, Abu Dhabi achieved its highest January occupancy since 2008’
Lloyd’s market engaging with US government over Gulf maritime plan, officials say
LONDON: The Lloyd’s of London market is engaging with the US government’s International Development Finance Corporation over a plan to provide political risk insurance and guarantees for maritime trade in the Gulf, Lloyd’s market officials said on Thursday.
“Lloyd’s is engaging constructively with the US Development Finance Corporation and relevant stakeholders, with a clear focus on ensuring that the Lloyd’s market continues to lead as the global center of excellence for war risk insurance,” a Lloyd’s spokesperson said.
The Lloyd’s Market Association, which represents the interests of all underwriting businesses in the Lloyd’s market, welcomed the engagement of US President Donald Trump, its CEO Sheila Cameron said separately in a statement on Thursday.
“Since Sunday 1 March, there have been at least 40 transits of vessels through the Strait of Hormuz. There remain approximately 1,000 vessels, approximately half of which are oil and gas tankers, with an aggregate hull value exceeding $25 billion in the Persian/Arabian Gulf and surrounding waters,” Cameron said, citing data.
Cameron added that the vast majority of these vessels were insured in the London market and insurance “currently remains in place.”
Insurance broker Marsh said on Wednesday it had met with US officials to explore solutions for restoring maritime trade.
The US Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, Trump said on Tuesday, adding he had ordered the International Development Finance Corporation to provide political risk insurance guarantees for maritime trade in the Gulf.
Earlier this week, London’s marine insurance market widened the area in the Gulf it deems as high risk as the conflict in the Middle East escalates.
