Luxury Hotel Room Rates Falling in Abu Dhabi

If you’ve been interested in seeing Abu Dhabi, now’s the time to go. A recent article in The National, the UAE’s English-language newspaper, points out that increased competition in luxury hotels is “causing a decline in room rates… despite rising occupancy rates as more people visit Abu Dhabi.” This was precisely Luxury Travel Advisor’s analysis back in June 2012, and the market continues to be a great value because of the influx of new rooms.

International hotel operators went on a building spree—with an “if you build it, they will come” philosophy—and indeed, Abu Dhabi’s hotels have reported a 33% increase in the number of guests in February (from the year prior). But with almost 850 new rooms being added this year (mostly five-star), hotels are reducing rates to drive occupancy.

Swanky hotels have themselves created tourist demand, which is only expected to increase as new projects are unveiled: the expanded airport, the opening of the Louvre museum on the cultural center of Saadiyat Island, and the continued rise of Etihad Airways, which has boosted the number of stop-over passengers en route between North America/Europe and Asia.

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Pictured: Park Hyatt Abu Dhabi

Park Hyatt Abu Dhabi

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