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AVERAGE RATES UP

Mideast hotel occupancy rates drop to 48.9pc

LONDON, July 26, 2016

Hotels in the Middle East reported mixed results in key performance metrics this June, posting a 16.3 per cent decrease in occupancy to 48.9 per cent compared to June 2015, said a report.

Average daily rate for the month was up 12.5 per cent to $184.69 and revenue per available room dropped 5.9 per cent to $90.25, according to the report by STR.

The region's hospitality sector also posted negative results for the second quarter, reporting a 5.5 per cent decrease in occupancy to 62.9 per cent compared to the same period last year.

Average daily rate for the quarter was down 3.0 per cent to $169.99 and revenue per available room dropped 8.3 per cent to $107.01 when compared to Q2 2015.

Saudi Arabia experienced nearly flat occupancy (down 0.5 per cent to 64.8 per cent), but a double-digit rise in ADR (over 14.2 per cent to SR816.60/$217.6) drove a double-digit increase in RevPAR (over 13.6 per cent to SR528.86/$140.9).


Thanks to strong performance during Ramadan, the absolute ADR and RevPAR levels were the highest on record for a second quarter in Saudi Arabia. ADR in June was up 40.7 per cent to SR1,239.28 ($330.2), and RevPAR increased 44.4 per cent to SR780.27 ($207.9). STR analysts note that Makkah and Madinah were the only two major hotel markets in the Middle East to experience year-over-year RevPAR growth during Ramadan.

Cairo, Egypt, saw mostly flat occupancy (over 0.2 per cent to 55.5 per cent) but double-digit increases in ADR (over 24.9 per cent to EGP980.94/$110) and RevPAR (over 25.2 per cent to EGP544.33/$61). April and May carried performance for the quarter. April was the first time on record in Cairo that ADR eclipsed EGP1,000.00 ($112.3), and May was the first month with occupancy above 70 per cent since November 2010. According to STR analysts, that performance is consistent with the visit of Saudi Arabia's King Salman and the investment deals that were signed during that time. On the other hand, June produced a 28.3 per cent drop in occupancy to 35.2 per cent and a 24.3 per cent decline in RevPAR to EGP291.47 ($32.7).

Manama, Bahrain, reported decreases in each of the three key performance metrics. Occupancy dipped 4.0 per cent to 48.9 per cent; ADR dropped 4.9 per cent to BD73.01 ($8.2); and RevPAR fell 8.7 per cent to BD35.71 ($4). Overall results for the quarter were significantly affected by Ramadan and a 29.5 per cent decrease in June occupancy to 32.4 per cent. The previous five months of the year had produced year-over-year occupancy growth in the market.

Casablanca, Morocco, experienced decreases in occupancy (down 11.4 per cent to 60.7 per cent) and RevPAR (down 3.9 per cent to MAD660.34/$66.7). ADR rose 8.4 per cent to MAD1,088.40 ($110). June significantly altered overall performance of the quarter with a 33.3 per cent decline in occupancy to 42.4 per cent—the lowest June occupancy on record in the market. - TradeArabia News Service




Tags: hotel | Occupancy | drop | Middle | East |

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