Hotel occupancy down 13 per cent

MUSCAT: Oman has reported a significant decline in hotel occupancy (down 13 per cent to 64.2 per cent) and Average Daily Rate (ADR) (down 13.6 per cent), resulting in a 24.8-per cent fall in revenue per available room (RevPAR) to RO 48.74, as per the latest report released by STR.
The STR analysts noted that Oman’s economy has been affected by low oil prices, and year-to-date figures through November show that RevPAR in Muscat is down 20.7 per cent.
The trend is similar in some of neighbouring cities in the region where Qatar reported a 1.2-per cent decline in occupancy to 69.1 per cent and a 6.8-per cent decrease in ADR to QR 469.75, leading to an 8-per cent drop in RevPAR to QR 324.38.
Abu Dhabi reported a 3.2-per cent decline in occupancy to 81 per cent and a 10.6-per cent decrease in ADR to AED 659.73, resulting in a 13.5-per cent drop in RevPAR to AED 534.11.
Analysts note that November is a traditionally strong month for Abu Dhabi, but supply growth (up 3.5 per cent year to date) continues to drive negative year-over-year performance.
According to a report by Cluttons, there will be an increase of 50 per cent in hotel rooms in the four and five star categories.

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