Leisure Segment Fuels Growth in Dubai
Thanks to strong growth across the leisure segment, hotels in Dubai recorded a 13 percent year-on-year surge in total RevPAR in April, driven by an 11.4 percent increase in achieved average room rate and a 5.4 percentage point jump in occupancy, to 87.8 percent.
The leisure segment accounted for 60 percent of total demand, a notable rise compared to the 48.8 percent observed in the 12 months to April.
Both individual and group segments increased over April 2016, up 15.6 percent and 2.4 percent, correspondingly.
Furthermore, hoteliers were able to cut costs, illustrated by the 1.9 percentage point drop in payroll to 20 percent of total revenue, which resulted in a 20.7 percent increase in profit per room.
Strong April After Weak Q1 in Kuwait
Hotels in Kuwait achieved an 11 percent jump in profit per room in April, on the back of a 6.9 percent rise in total RevPAR.
While properties recorded an 11.8 percent year-on-year increase in RevPAR, due to a 5.3 percentage point rise in occupancy along with a 2.7 percent surge in achieved average room rate, non-rooms revenue fell.
However, hoteliers reported 1.7 percent cost saving in payroll, as well as a 3.5 percent saving in overheads on a per available room basis.
Despite the performance, it did not offset the 6.2 percent decline in profit per room seen in the first quarter (Q1).
As a result, year-to-date gross operating profit per available room fell 1.2 percent to USD120.96.
Grand Prix Ensures Growth in Manama
In April, profit per room in Manama soared 32 percent, fuelled by the 10.4 percentage point surge in occupancy, which reached 69 percent due to the 2017 Formula 1 Gulf Air Bahrain Grand Prix, the timing of which also had an impact on results, falling in April rather than being spread across March and April.
During the month under review, achieved average room rate jumped two percent year-on-year to USD194.14.
As a result, RevPAR increased 20.1 percent, while increases in non-rooms revenue, including a 11.7 percent rise in food and beverage, resulted in a 17.1 percent growth in total RevPAR to USD204.72.
Despite a slight rise in costs, the strong volume drove a USD19.71 uplift in profit per room to USD81.27.