UAE Hospitality Market Poised for Growth

The year -to-date data to March 2024 demonstrate the sustained strength of visitation in the UAE. …reports Asian Lite News

CBRE Middle East, the global leader in commercial real estate services and investments, released its latest edition of the UAE Hospitality Market Review for the first quarter of 2024.

Globally, during the first quarter of 2024, the average number of flights stood at 118,689, surpassing the 2019 pre-pandemic baseline by 11.5%, and registering a year-on-year increase of 11.0%. In March 2024, data from IATA revealed that the global Passenger Load Factor (PLF) reached 82.0%, marking an increase of 1.0% from the comparable 2023 figure. The available seat kilometers (ASKs) registered a year-on-year increase of 12.3%.

The year -to-date data to March 2024 demonstrate the sustained strength of visitation in the UAE. Abu Dhabi witnessed a remarkable surge in the total number of hotel guests, recording an increase of 22.0% compared to the previous year, with a total of 1.30 million visitors. Similarly, Dubai experienced robust growth with a total of 5.18 million international visitors during the same period, representing a year-on-year increase of 10.9% and a 9.1% rise from the 2019 level.

In the year-to-date to March 2024, the UAE witnessed a marginal increase of 0.9 percentage points in the average occupancy rate compared to the year prior. Over the same period, the country’s ADR increased by 5.6%, resulting in an overall 6.8% rise in the average Revenue Per Available Room (RevPAR).

In the year to date to March 2024, the UAE’s ADRs stood at 24.9% above the 2019 comparable figure. This growth has been underpinned by higher ADRs in Sharjah, Dubai, Abu Dhabi, Fujairah, and Ras Al Khaimah, which have recorded increases of 27.9%, 24.0%, 18.0%, 11.1%, and 1.9%, respectively. As a result, we have seen these cities’ RevPARs outperform their 2019 pre-pandemic levels by 34.3%, 22.3%, 19.7%, 40.6%, and 3.0%, respectively. In terms of citywide occupancy, the majority of locations have exceeded their 2019 pre-pandemic levels.

Strong performance is expected to continue in the UAE’s hospitality sector over the remainder of the year, as the elevated visitation levels will likely be maintained given a number of key upcoming local and regional events.

Taimur Khan, Head of Research MENA in Dubai, comments: “The UAE’s key performance indicators continued to showcase resilient performance in the first quarter of the year, largely supported by the elevated visitation levels. Over the remainder of the year, we expect that visitation will see a marked increase owing to several events, which are expected to continue to drive occupancy and rates to record levels.”

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