Room rates in the capital are expected to remain flat for the next two years according to one of the UAE’s biggest hotel chains.
There has been a steady supply of new rooms, especially in the five-star segment over the past six years, which has kept prices competitive.
Abu Dhabi has 22,320 rooms across 92 hotels, according to STR Global.
“The room rates in Abu Dhabi last year came a little bit lower than the 2013 [levels]. We might see them around the same level in 2015 and start seeing an increase of the average room rates by 2017,” said Omer Kaddouri, the president and chief executive of Abu Dhabi-based Rotana Hotel Management Corporation. “Abu Dhabi still needs to absorb all the new inventory that has come in since 2010 and 2011. We are still seeing a lot of new hotels opening.”
Rotana operates 11 properties across the emirate in midscale to luxury segments. It expects to open two properties in Abu Dhabi this year — Capital Centre Arjaan with 258 rooms and Capital Centre Rotana with 315 rooms.
Zaya Nurai Island yesterday opened its 32-villa resort near Saadiyat Island in Abu Dhabi. Promotional nightly rates this week for one-bedroom villas started at Dh3,290. The Dubai-based Zaya Hospitality will manage the villas.
Next year, Starwood expects to open W Abu Dhabi and InterContinental Hotels Group will open InterContinental Abu Dhabi — Grand Marina.
The five-star, 318-room Park Rotana Abu Dhabi Hotel opened in 2010, while the 189-room Hyatt Capital Gate Abu Dhabi and the 306-room Park Hyatt Abu Dhabi Hotel and Villas on Saadiyat Island opened their doors in 2011.
The average room rate for Abu Dhabi for the first 11 months of 2014 was Dh437, compared with Dh448 for the same period in 2013, according to official data.
Some analysts are more upbeat on hotel room demand in Abu Dhabi this year.
“Considering the growth in demand and a relatively limited addition to supply expected during the year at roughly 2,000 rooms, the fundamentals appear to be positive and we expect the room rates to show a gradual growth this year,” said Rashid Aboobacker, a senior consultant with TRI Hospitality Consultancy, Middle East.
Abu Dhabi’s Tourism and Culture Authority is targeting 3.5 million guests, up from 3.1 million last year.
In a reflection of demand for mid-range hotels in Abu Dhabi and Dubai, where about 60 per cent of the supply is limited to the upscale segments, Rotana’s fastest growing brand is Centro. Launched six years ago, the company has five Centros in the UAE and 15 in the development pipeline.
Abu Dhabi’s rates remain high compared with its neighbour.
In December, Dubai hotels increased their room rates by 1.7 per cent to an average price of Dh1,024.23 year-on-year but had occupancy dip by 1.4 per cent to 79.3 per cent, according to STR Global.
The last month of the year brings a steep rise in room rates in Dubai during the festive rush. This year was no exception, with rates typically between Dh1,000 and Dh2,000 at some upmarket hotels.
“Despite the continuous strong supply growth, average daily rates managed to increase in one of the busier months for the market, achieving the highest levels of any December since 2008,” said Elizabeth Winkle, the managing director of STR Global.
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UAE currency: the story behind the money in your pockets
Company profile
Company name: Nestrom
Started: 2017
Co-founders: Yousef Wadi, Kanaan Manasrah and Shadi Shalabi
Based: Jordan
Sector: Technology
Initial investment: Close to $100,000
Investors: Propeller, 500 Startups, Wamda Capital, Agrimatico, Techstars and some angel investors
How Apple's credit card works
The Apple Card looks different from a traditional credit card — there's no number on the front and the users' name is etched in metal. The card expands the company's digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone. Its attributes include quick sign-up, elimination of most fees, strong security protections and cash back.
What does it cost?
Apple says there are no fees associated with the card. That means no late fee, no annual fee, no international fee and no over-the-limit fees. It also said it aims to have among the lowest interest rates in the industry. Users must have an iPhone to use the card, which comes at a cost. But they will earn cash back on their purchases — 3 per cent on Apple purchases, 2 per cent on those with the virtual card and 1 per cent with the physical card. Apple says it is the only card to provide those rewards in real time, so that cash earned can be used immediately.
What will the interest rate be?
The card doesn't come out until summer but Apple has said that as of March, the variable annual percentage rate on the card could be anywhere from 13.24 per cent to 24.24 per cent based on creditworthiness. That's in line with the rest of the market, according to analysts
What about security?
The physical card has no numbers so purchases are made with the embedded chip and the digital version lives in your Apple Wallet on your phone, where it's protected by fingerprints or facial recognition. That means that even if someone steals your phone, they won't be able to use the card to buy things.
Is it easy to use?
Apple says users will be able to sign up for the card in the Wallet app on their iPhone and begin using it almost immediately. It also tracks spending on the phone in a more user-friendly format, eliminating some of the gibberish that fills a traditional credit card statement. Plus it includes some budgeting tools, such as tracking spending and providing estimates of how much interest could be charged on a purchase to help people make an informed decision.
* Associated Press
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
A Dog's Journey
Directed by: Gail Mancuso
Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott
3 out of 5 stars
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
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Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
