Hotel rates in Abu Dhabi are the highest in the world, according to the reports from several hospitality consultants. Revenue per available room (REVPAR) in Abu Dhabi increased to US$290 in the first quarter of 2009, compared to $265 in the same quarter of 2008, according to STR global.
Dubai’s hotel performance still remains strong compared to many other locations, with a REVPAR of $203 in the first quarter of 2009. Abu Dhabi has not seen the large number of hotel rooms come on line that Dubai has in the past year or so, so it hasn’t experience the same drop. There is still substantial demand in Abu Dhabi compared to the number of rooms, and that should keep rates high.
“People have been worried because of the performance in Dubai because it has dropped compared to last year, but it is still outperforming other markets such as London, Paris or New York,” said Jalil Mekouar, the executive vice president of Jones Lang LaSalle Hotels.
“Because Abu Dhabi is building in a more paced manner, it probably won’t see the peaks and the troughs that Dubai has seen.”
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