Conventions boost Abu Dhabi hotel rates and tenure

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Conventions boost Abu Dhabi hotel rates and tenure

Conventions boost Abu Dhabi hotel rates and tenure

An active summit season and an increase in room rates are anticipated to keep Abu Dhabi hotels in the black as abundance and profitability improved in the first half of 2014.

Tenancy levels increased 4.9% points to touch 78.2%, while the average room rate was US$151.68 against $151.61 during the same time of last year, according to a report.

The gross operating profit per available room, or the bottom line profits, rose to $81.18 during the first six months, compared with $72.61 last year.

In June, the average daily room rate rose by 4.8% to $122.30, and the tenure rate was 69.7% up by about 5 percentage points over 2013. Convention activities pressed the gross operating earnings each available room up 31.3% to $31.39 over June 2013.

The stable progress in tenancy has helped hoteliers preserve rates during the first half of the year. They expect that hotels in Abu Dhabi will be looking to influence the resilient tenure and continued demand development to push rates higher in a bid to boost top and bottom line performance levels.

With some key conventions heading to Abu Dhabi in the second half of 2014, the hotels scene is anticipated to remain busy.

As the city capital and one of the fastest rising cities in the Middle East, Abu Dhabi is a key market and they see robust capability. .

Mohamed Dekkak