Dubai city hotels continue to lead in terms of the highest occupancy in the  Middle East and North Africa (Mena) region, recording 88.6 per cent occupancy in March 2017.

However, average daily rates (ADR) in Dubai dropped by 8.4 per cent from $309 in March 2016 to $283 in March, coupled by a slight decline in occupancy by 1.5 per cent when compared to the same time last year, leading to a decline from $272 in March 2016 to $245 in March 2017.

Commenting on the January 2017 Mena Hotel Benchmark Survey Report, Yousef Wahbah, Mena head of transaction Real Estate at EY said: "Hotel performance in March dipped in the majority of Mena hospitality markets compared to March 2016."

"Across the GCC, most cities witnessed a decline in revenue per average room (RevPAR) in March 2017, compared to the previous year, with the exception of Kuwait City, which had an increase in both occupancy and RevPAR, and Ras Al Khaimah (RAK), which witnessed a modest increase in RevPAR," he noted.

Hospitality markets in Beirut and Cairo, witnessed a positive increase across all KPIs in March. In Beirut, occupancy increased by 10.9 per cent which was coupled with a rise in ADR from $134 in March 2016 to $139 in March 2017, resulting in an increase in RevPAR by 26.2 per cent when compared to the same period last year.

Cairo’s hospitality market continues to improve month-on-month due to improved stability in the country, recording a 111.2 per cent increase in RevPAR. Compared to the same period last year, hotel occupancy increased by 20.8 per cent percentage points to reach 70.9 per cent in March 2017. ADR in the city increased by 49.1 per cent compared to last year, however Cairo’s room rates still remain one of the lowest in the region at US$79, due to the devaluation of the currency.

Looking at hotel performance in Q1 2017, all Mena markets with the exception of Cairo, Beirut and Kuwait witnessed a decline in room yield compared to Q1 2016. Dubai overall hotels maintained the highest MENA occupancy in the first quarter of the year at 86.8 per cent.

"The trend of a softer performance as compared to the previous year is expected to continue in Mena over the summer and the month of Ramadan, which starts towards the end of May,” he added - TradeArabia News Service