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Middle East and Africa enjoy increase in hotel occupancies

MEA November hotel occupancy soars 67.4pc

LONDON, December 29, 2014

The Middle East and African region reported mixed performance in hotel occupancy rates for November, with the region showing a 4.8 per cent increase to 67.4 per cent, a report said.

In year-over-year comparisons, the region reported a 2.4 per cent decrease in average daily rate (ADR) to $174.28 and a 2.3 per cent increase in revenue per available room (RevPAR) to $117.40, as per results released by STR Global – a leading source of global hotel data.

"November year-to-date figures show Middle East and Africa grew RevPAR by 4.7 per cent, primarily driven by occupancy increases (+3.9 per cent). Focusing on the three sub-regions, the Middle East saw year-to-date occupancy growth. However, rate remained flat as new supply put pressure on performance", said Elizabeth Winkle, managing director of STR Global.

"Northern Africa saw a double-digit increase in occupancy, with a marginal increase in rate, primarily driven by performance recovery in Egypt. In contrast, Southern Africa has seen declines across all key performance measurements," Winkle said.

"Many nations within this sub-region are major oil producers, and with recent declines in oil prices it is likely that many markets will be impacted by this in the coming months and have a knock-on effect on the other hotels in the region," she added.

Highlights among the Middle East and Africa region's key markets for November include:

  • Cairo, Egypt, which jumped 52.3 per cent to 50.5 per cent in occupancy, reporting the largest increase in that metric;
  • Beirut, Lebanon, followed with a 23.6 per cent increase in occupancy to 53.5 per cent;
  • Jeddah, Saudi Arabia, increased 9.2 per cent to $236.88 in ADR, recording the largest increase in that metric;
  • Lagos, Nigeria, experienced the largest decrease in all three key performance metrics. The market's occupancy fell 15.1 per cent to 50.0 percent; its ADR decreased 13.4 per cent to $227.35; and its RevPAR was down 26.5 per cent to $113.62, the report said. – TradeArabia News Service



Tags: hotel | Africa | Occupancy | midle east |

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