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Dubai and Amman Face Challenges

Dubai and Amman hotels continued to feel the pressure of declining

profits in August, Saudi Arabia on the other hand remained steady as HotStats’ latest MENA Chain Hotels Market Review revealed.

Four- and five-star hotels in Dubai reported weakening performance levels, with RevPAR plummeting 10.1 percent to USD147.45.

Due to a marginal rise in occupancy levels, the contraction in room revenues was led largely by average room rates (ARR) falling 10.8 percent to USD196.49. Profitability stages remained under strain causing gross operating profit per available room (GOPPAR) to decline 9.8 percent to USD69.10.

In Amman occupancy dropped by four percentage points to 65 percent, ARR was down 6.2 percent to USD152.64, while RevPAR decreased 11.6 percent to USD99.27, leading to an eight percent negative change in GOPPAR to USD76.94.