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Abu Dhabi hotel rates are getting cheaper

Planning to take a short break from work soon? Now’s a good time to go on staycation, as there’s quite a good deal on holiday accommodations in the UAE.

Planning to take a short break from work soon? Now’s a good time to go on staycation, as there’s quite a good deal on holiday accommodations in the UAE.

In Abu Dhabi, home to a number of five-star luxury properties and family-friendly resorts, residents can enjoy a little pampering without breaking the bank, as hotels have just dropped their room rates, according to a recent research by London-based STR.


The company’s preliminary analysis showed that the entry of new hotels in the capital is again putting pressure on hotels to bring their room rates down to attract guests.

Occupancy rates at hotels in Abu Dhabi averaged 74.2 percent in January, down by 1.4 percent from a year earlier as the number of visitors could not fill the growing room supply.

The average daily rate at hotels in Abu Dhabi dropped significantly by 10 per cent to Dh465.80 in January compared to a year earlier, while the revenue per available room – a key industry metric commonly known as RevPAR, declined by 11.2 percent to Dh345.68.

This means that guests staying in Abu Dhabi hotels can expect to spend about 10 percent less on rooms, be they economy, budget or the supremely luxurious.

“Abu Dhabi’s [room rates] were once again pressured by supply growth in the market,” STR said on Monday.

The market’s hotels did record a significant uptick in RevPAR on the last day of the month, when a huge stream of visitors flocked to the capital for the Global Space Congress that took place between January 31 and February 1.

Towards the end of the month, hotels were mostly busy, with occupancy levels reaching 90.2 percent on January 30 and 89.8 percent on January 31.