Aldar hotel revenue jumps 13.1% thanks to higher occupancy

Portfolio includes seven properties on Yas Island as tourist attractions in the capital draw more visitors.

The Yas Viceroy hotel on Yas Island. Ravindranath K / The National

Aldar Properties reported a 13.1 per cent increase in first half revenue from its hotels portfolio as tourist attractions in the capital drew more visitors.

The average occupancy rate at its nine hotels for the first six months of the year was 82 per cent, up from 78 per cent a year earlier. Their revenues totalled Dh283 million. Food and beverage revenues were up 11.4 per cent to Dh113.9m from Dh102.2m in the same period last year.

Aldar’s portfolio includes seven properties on Yas Island, including the Yas Viceroy straddling the Yas Marina Circuit Formula One track.

The average occupancy at all hotels on Yas Island rose in the first half of the year, hitting 84 per cent compared to 70 per cent a year earlier. The overall occupancy rate of hotel rooms in the six months to June stood at 77 per cent, up from 69 per cent in the same period last year, according to data from the Abu Dhabi Tourism and Culture Authority.

Nearly 9.48 million passengers passed through Abu Dhabi International Airport in the first six months of this year, a year-on-year increase of 19.4 per cent. This was mostly because of Etihad Airways’ route expansion.

About 16,500 Chinese tourists who took to the capital earlier this year as part of an incentive trip from the beauty products company Nu Skin also contributed to the surge in numbers.

Besides Yas Island, Saadiyat Island beaches and city breaks also feature high on the tourists’ list, according to Samir Hamadeh, the general manager at Alpha Tours, which handles leisure travellers.

“We have seen a 23 per cent rise in the number of tourists staying in Abu Dhabi during the first half of this year compared to the last,” he said.

“Abu Dhabi still does not have the same inventory as Dubai. But the destination is on the rise based on the attractions and promotions from TCA Abu Dhabi.”

The Arabian Gulf, India, Germany, the United Kingdom and China form the largest source markets for Aldar’s hotels.

Aldar is expected to open the 195-room Courtyard by Marriott at the World Trade Center Abu Dhabi towards the end of the year. The company will add 1,000 rooms in the next few years, it said

It also has a large land bank in the Western Region and is assessing the demand for more properties.

“Demand growth within the hotel market has coincided with strong tourism figures as a result of the growing attractions that are on offer throughout Abu Dhabi,” said Talal Al Dhiyebi, the executive director of asset management at Aldar Properties.