Capital’s hotels feel strain

Abu Dhabi’s hotels are starting to feel the strain of the global financial crisis and weaker tourism demand, with last month’s room revenues falling for the first time in more than a year, according to data.

Figures from STR Global show revenue per available room (RevPAR) in the capital declined by 6.9 per cent to $249.43 last month, down from $267.90 in April last year. Occupancy levels also fell to 80.3 per cent, down from 88 per cent in April last year. But average room rates in Abu Dhabi were up 2 per cent to $310.56.

“The feeder markets really have absolutely slowed right down,” said Rob O’Hanlon, a partner at Deloitte Tourism, Hospitality and Leisure. “The majority of markets are actually feeling that and Abu Dhabi is getting its share.”