Stellar Performance by Abu Dhabi Hotels In September

The Abu Dhabi hotel market continues to gain momentum with four to five star hotels reporting positive gains in performance levels for the month of September compared to last year, according to the latest HotStats report by TRI Consulting. Abu Dhabi has been having challenges over last couple of years because of the increase in new supply which had an impact on the average room rates.

However, in the last two to three months the average room rates have started to increase and bottom out. The September data from HotStats reports shows that YTD performance for Abu Dhabi hotels is actually increasing; the Average Room Rate (ARR) increased by 4.2% to US$128.96 while occupancy grew by 6.6 percent points to 76.6%, resulting in revenue per available room (RevPAR) rising 14% to US $98.76.

There is a marginal increase compared to 2013 which is great news for Abu Dhabi because the city is attracting a lot more visitors which in turn has resulted in very strong occupancy levels and it has helped the hoteliers to turn that corner and start yielding more effectively when it comes to room rates.

The hotel profitability is relatively strong in Abu Dhabi but the rates are still comparatively lower than the hotels in Dubai, Fujairah and Ras Al Khaimah. This difference in rate is because of huge influx of supply and a weak demand for a last couple of years. So, the hoteliers resorted to drop their rates to get people into their bedrooms but now that the demand has shifted and a lot of people have started coming through, the rates have started coming up. In fact it is projected that in the next couple of years the Abu Dhabi hotel rates will be on par with Dubai.

The biggest source market for Abu Dhabi is India. The Secondary market is with the UK and US but surprisingly Abu Dhabi doesn’t attract a large proportion of Saudi Arabian visitors. Saudi Arabia is the largest source market in Dubai yet it doesn’t register in the top 5 markets in Abu Dhabi.

A lot of new real estate, retail, leisure and entertainment projects are in the pipeline to cater to the growing needs of the visitors. In fact, Macy’s and Bloomingdales, two of the biggest departmental stores in the US, are planning to set up shop at the capitals Al Maryah Island and with Yas mall opening in November Abu Dhabi will attract more regional visitors because it has a greater retail offering. Retail drives the people and if you look at the Saudi visitors, their biggest motivation is leisure and shopping.

Abu Dhabi is also building up the level of demand to attract large groups of 90+ but they don’t have the infrastructure. ADNEC has the capability to cater to large groups but they don’t have the driving force. Abu Dhabi is trying to position itself as a destination to attract international visitors but Dubai is still leading the way.

Having said that, the hotel occupancy will continue to grow in Abu Dhabi as it gears up for world class events like Formula 1 Abu Dhabi Grand Prix and opening of retail space in the near future.

Ras Al Khaimah Hotel Revenue Up By 47% In Q3

The Tourism chief at Ras Al Khaimah announced recently that the hotel room revenue grew by 47 % in the third quarter of 2014 as the emirate is a popular destination among the tourists.

Last year the 1 million barrier was not broken until November, demonstrating the rocketing tourism growth being experienced by the Emirate, which has 65 kilometers of prime beach coastline.

Steven Rice, the CEO of RAK TDA said that “Our percentage growth in guest nights for the third quarter of 2014 compared to the same period last year was 72%, so extremely impressive.” He also mentioned that “We are also seeing significant increases in the number of people searching for Ras Al Khaimah in Google, in visits to our website, and in the levels of engagement via our social media presence. In addition, hotel room revenue increased in the third quarter of 2014 by 47% compared to last year."

RAK is a very popular emirate among the residents for a getaway during Eid and public holidays. The emirate attracted over 63,870 guest nights during 5 days of Eid Al Adha, domestic UAE travelers accounted for 32%, UK 12%, Russia 12% and Germany 10%.

According to data gathered from Smith Travel Research report, Ras Al Khaimah’s average daily room rate (ADR) was 19% higher than Abu Dhabi, which was supported by new openings on Al Marjan Island and Waldorf Astoria, which was Hilton luxury brands’ first property in the UAE.

Rice also commented on future prospects “Forward bookings are looking strong, interest in the emirate across multiple business sectors is on the rise and overall we expect the positive growth patterns experienced in Ras Al Khaimah to continue."

Earlier this year Ras Al Khaimah said it was launching a new tourism branding, pitching the emirate as a “world class leisure destination” and retreat from the urban cities such as Dubai. RAK TDA is considering building a mountain village and establishing mountain climbing and zip lining to attract tourists and to add to the list of activities.

Photo credit: deluxblog.it

Region’s first Hard Rock Hotel to Open in Dubai Marina

The first Hard Rock Hotel in the Middle East is expected to open in Dubai Marina in Mid 2015. The hotel will be located in Dubai’s 2^nd tallest tower, Marina 101 tower, will be the first Hard Rock branded Hotel in the Middle East, with a second hotel, scheduled to open in Abu Dhabi in 2017.

The 281 room Hard Rock hotel will occupy the first 33 floors of the Marina 101 tower, which is developed by Sheffield holdings. The club lounge and dining venue will be located on the 101^st floor of the second tallest tower in Dubai.

The Hard Rock hotel will include a Rock Spa, featuring the new body and rhythm, spa menu. The property will also feature pre-meeting and events space, including a outdoor terrace at lobby level and a lounge area on 101st floor with a rock shop for selling Hard Rocks’ merchandise and The Sound of your Stay – an exclusive music program for the Hotel guests.

Hard Rock has partnered with Abu Dhabi Financial Group to launch the Hotel in the region. Hamish Dodds, Chief Executive of Hard Rock Group said that they chose to open the hotel in Dubai Marina as it is centrally located in the New Dubai with an urban proximity of Dubai Media City, which is the hub of entertainment and business.

Hard Rock has 21 hotels, 145 cafes and 10 casino’s worldwide. Regionally, Hard Rock plans to open hotels in Egypt, Morocco and Doha in the next two years. In the UAE, it is considering opening a hotel in Ras Al Khaimah.

The hotel property was previously intended to be operated by Hampshire Hotels Management in association with Wyndham Hotel Group, but Sheffield Holdings confirmed in July 2014 that the companies were no longer involved with the project.