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18.7pc RISE IN REVPAR

Dubai hotels post highest occupancy, rates in Mena

DUBAI, May 30, 2017

Dubai's hotels outbeat the hospitality markets in the Middle East and Africa (Mena) region in April, reporting the highest occupancy at 88 per cent and highest RevPAR of $273 - up 18.7 per cent when compared to last year - new data showed.

According to the April 2017 Mena Hotel Benchmark Survey Report, Dubai experienced an increase across all KPIs, including average room rate which was $310.

Numerous events such as the Arabian Travel Market and the Arabian Hotel Investment conference attracted visitors from across the Mena region and may have helped boost the city’s hotel performance.

Commenting on the report, Yousef Wahbah, Mena head of Transaction Real Estate at EY said: "The Mena hospitality industry experienced mixed results in April 2017 as higher occupancies yet lower average room rates affected the overall revenue per average room (RevPAR).

Abu Dhabi’s hospitality market witnessed a drop in RevPAR by 4.8 per cent in April 2017, which can be attributed to the drop in ADR from $133 in April 2016 to $120 in April 2017. However, occupancy increased by 4.5 per cent in April 2017 when compared to the same month last year.

Elsewhere in the GCC, Doha’s hospitality market witnessed an increase in average occupancy from 65.6 per cent in April 2016 to 74% in April 2017. However, the city’s ADR dropped by 7.3 per cent in April 2017 when compared to the same time last year. The increase in Doha’s hospitality market could be a result of Qatar Airways’ new offer for transit travelers who are eligible for a free one-night hotel stay if they choose to layover.

In Muscat, the hospitality market witnessed an increase in average occupancy of 7.7 per cent when compared to the same period last year. This may be a result of the spring break and Easter holidays where expats from neighboring countries considered the city to be an ideal short getaway.

In Saudi Arabia, Riyadh’s hospitality market continues to witness an overall drop in performance month over month. RevPAR dropped from $130 in April 2016 to $106 in April 2017. This can be attributed to the drop in ADR by 10.9 per cent in April 2017, coupled by a decrease in average occupancy of 5.8 per cent when compared to the same time last year. However, Makkah saw an increase in RevPAR, reaching $107, a 24.3 per cent increase from last year, possibly due to an increase in religious tourism ahead of Ramadan.

Outside of the GCC, Amman’s hospitality market witnessed a decrease in RevPAR of 5.3 per cent in April 2017 when compared to the same month last year. The drop is a result of the ADR decreasing from $153 in April 2016 to $148 in April 2017, though occupancy remained relatively steady.

Beirut also benefitted from the spring break and Easter holidays as occupancy increased by 13.2 per cent to 68.8 per cent, the average room rate increased by 14 per cent to US$148, and RevPAR jumped by 40.9 per cent to $102 when compared to the same month in 2016.

With the start of Ramadan at the end of May, it can be expected that Mena cities will experience a softer performance until the Eid holidays at the end of June.” - TradeArabia News Service




Tags: hospitality | hotel | Mena | Dubai | market | benchmark | EY |

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