Abu Dhabi top UAE occupancy rates in first half amid war fallout

Abu Dhabi's hotel industry leads occupancy rates in the UAE during the first half of the year, according to consultancy JLL. Occupancy in Abu Dhabi stood at 66.8% for the first six months, remaining at 65.2% in June. The average daily rate (ADR) was Dh668.30 in the first half, dropping to Dh486.80 in June, a 4.3% and 2.1% decline year-on-year, respectively.

Revenue per available room (RevPAR) fell by over 20% to Dh446.60 in the first half and 12.1% to Dh317.60 in June. Dubai's occupancy rates were lower, at 56.4% in the first half and 51.6% in June. ADRs were Dh701.10 and Dh375.60, with a 7% and 17.1% year-on-year decline, respectively. RevPAR in Dubai fell more than 35% in the first half and nearly 39% in June.

Ras Al Khaimah had an occupancy rate of 49.6% in the first half, increasing to 51.6% in June. ADRs rose 5.2% to Dh705.60 in the first half and 11.6% to Dh511.60 in June, with RevPAR sliding by 28.6% to Dh347.70 and 50% to Dh172.10. Overall, the UAE's occupancy was 58% in the first half and 53% in June, with ADRs at Dh680.60 and Dh396.90, respectively.

RevPAR declined by nearly a third to Dh394.20 and Dh209.40. The performance was attributed to regional conflict and traditionally quieter summer months. Operators responded with domestic-focused strategies, introducing discounts and staycations to offset the impact of reduced international arrivals. Government initiatives, such as Dubai's Dh2.5 billion relief package, cushioned the industry from immediate market challenges.

Despite the Iran war's impact, the UAE fared better and recovered faster due to government support programs and the industry's underlying fundamentals.