Eid holidays bring cheer – and profits – back to Dubai hotels

Dubai saw hotel revenues and profits grow as demand increases on the back of Eid-al-Fitr holidays while Abu Dhabi witnessed a recovery in profits in August, according to the latest HotStats survey of full service hotels by TRI Hospitality Consulting.

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Neighbouring Abu Dhabi, however, saw profitability stagnate even as the UAE capital saw occupancy improve, notes TRI. “While Dubai thrived and profited from the spike in leisure demand brought forward by Eid-al-Fitr, Abu Dhabi found itself struggling to maintain the rates despite a favourable movement in the occupancy levels,” said Peter Goddard, Managing Director of TRI Hospitality Consulting in Dubai.

Occupancy in Dubai increased 8.7 percentage points to 64 per cent and Average Room Rate (ARR) increased by more than a fifth (20.4 per cent) to $204.93 (Dh752.70) on the back of a surge in demand from the regional and international travellers visiting Dubai on the back of Eid-al-Fitr holidays.

“Hotel profitability for August fell back into black this year compared to the same month last year when hotels registered losses due to lower occupancy levels, reduced room rates and elevated costs driven by Ramadan which occurred throughout the entire month,” the consultancy noted in its latest report on hotels in the region.