The Middle East/Africa region witnessed a 3.9 per cent increase in hotel occupancy levels in December last year to 61.9 per cent compared with the same period in 2013, a report released by global hotel data provider STR Global said.

The region also reported a 3.2-per cent increase in average daily rate to $183.35 and a 7.3 per cent increase in revenue per available room (RevPAR) to $113.53 in December 2014, the report showed.

The region also reported a positive performance during the year (2014) with a 3.8 per cent increase in occupancy levels to 63.3 per cent, a 1 per cent increase in ADR to $165.97 and a 4.9 per cent increase in RevPAR to $105.13.

Occupancy rates in Cairo, Egypt, soared 49.4 per cent to 52.6 per cent in December 2014, compared to the same period in 2013. Two other markets posted double-digit occupancy increases are: Beirut, Lebanon (up 24.3 per cent to 56.3 per cent); and Doha, Qatar (up 15.3 per cent to 74.4 per cent).

The UAE capital Abu Dhabi had the highest increase in average daily rate (ADR) which was up 9.7 per cent to $159.85. Cairo followed with a 7.5 per cent increase in ADR to $109.04.

Other highlights of the Middle East/Africa region’s key markets for December include (year-over-year comparisons):

• Nairobi, Kenya, reported the largest occupancy decrease, falling 12.1 per cent to 37.8 per cent.
• Sandton and surroundings, South Africa, reported the largest decrease in ADR which was down 25.2 per cent to $93.30).
• Four markets reported double-digit RevPAR increases: Cairo was up 60.6 per cent to $57.36; Beirut was up 32.4 per cent to $93.02; Doha witnessed an increase of 23.5 per cent to $145.30; and Abu Dhabi was up 20.5 per cent to $123.76.
• Sandton and Surroundings reported the largest RevPAR decrease, falling 32.7 per cent to $43.29.

“The Middle East has had one of the lowest supply growths in the last six years. Lower supply coupled with a 9 per cent increase in demand, we’ve seen a positive impact on occupancy, which reached 68.8 per cent. This level was last seen in 2008; although the rate perspective in U.S. dollar terms has remained flat this year and is still about $28.00 away from its pre-recession peak in 2008. It is important to note the product offering in the Middle East has changed dramatically in the past five years with midscale and economy hotels opening in many markets, thus changing the market mix”, said Elizabeth Winkle, managing director of STR Global.

Moreover, Northern Africa achieved a RevPAR growth of 15.1 per cent.

“This was driven primarily by the recovery seen in Egypt, where year to date the country has experienced a tremendous RevPAR increase of 32 per cent resulting from occupancy and ADR growth”, Winkle said. – TradeArabia News Service