Abu Dhabi’s Hotel price index (HPI) decreased from 90.6 in May 2014 to 80.1 in June 2014, a decrease of 11.5 per cent, according to Statistics Centre- Abu Dhabi (SCAD).

In its report, which provides an analysis of the hotel establishments price index during the month of June 2014 compared with May 2014 and the same period of 2013, SCAD said the HPI decreased by 3.8 per cent year-on-year, from 83.3 in June 2013 to 80.1 in June 2014.

HPI for the first five months in 2014 decreased by 5.7 per cent compared with the same period in 2013.

The HPI is a statistical indicator that measures the relative change of hotel room’s prices over a period of time. And it shows the time series of changes in the prices of hotel rooms by categories approved for hotels in the emirate of Abu Dhabi.

This indicator provides price movements in the hotel establishments at the categories of hotels adopted by Abu Dhabi Tourism & Culture Authority.

Hotel price index

The hotel room rates decreased by 14.2 per cent in June 2014 compared with May 2014. The hotel room rates decreased by 5.1 per cent during June 2014 compared with June 2013. The hotel room rates decreased by 7.2 per cent during the first five months in 2014 compared with the same period in 2013.

Hotel apartment price index

The hotel apartments room rates decreased by 3.6 per cent during June 2014 compared with May 2014. The hotel apartments room rates decreased by 0.8 per cent during June 2014 compared with June 2013. The hotel apartments room rates increased by 0.5 per cent during the first five months in 2014 compared with the same period in 2013.

Hotel price index during June 2014 compared with May 2014

The hotel establishments price Index decreased by 11.5 per cent during June 2014 compared with May 2014, where it recorded 80.1 in June, while in recorded 90.6 in May 2014. This is mainly as a result of the decrease in hotel room rates by 14.2 per cent which are an important weight in the hotel price index accounting for 78.3 per cent. There was also a decrease in the hotel apartments room rates by 3.6 per cent.

The decreases in hotel room rates by 14.2 per cent are as a result of the decreases in prices for "five-stars", "four-stars", "three-stars", "two-stars" and "one-star" "hotels by 17.5 per cent, 8.1 per cent, 12.4 per cent, 2.5 per cent and 16.1 per cent respectively during June 2014 compared with May 2014.

The decreases in prices for "Deluxe", "Standard" and "Superior" hotel apartments by 2.5 per cent, 5.7 per cent and 4.1 per cent led to a decrease in overall hotel apartments room rates by 3.6 per cent.

Hotel price index during June 2014 compared with June 2013

The hotel establishments price index decreased during June 2014 compared with June 2013 by 3.8 per cent, as the rate of hotel rooms recorded a decrease of 5.1 per cent, while the rate of hotels apartments increased by 0.8 per cent.

On the other hand, the rate of hotel apartment rooms showed an increase of 0.8 per cent during June 2014 compared with June 2013, with increases in most hotel apartments categories. The prices of "Deluxe" and "Superior" hotel apartments increased by 1.7 per cent, and 4.6 per cent, while the prices of "Standard" hotel apartments decreased by 5.3 per cent.

The cumulative index of hotel establishments prices (Jan 2014 to June 2014) decreased by 5.7 per cent compared with the same period in 2013. The hotels room rates decreased by 7.2 per cent while the rate of hotel apartment rooms increased by 0.5 per cent.