The hotel industry in the Middle East reported negative results during May 2017, while hotels in Africa recorded mixed results in the three key performance metrics, according to data from STR.

Occupancy levels in the Middle East dropped 5.9 per cent to 64.4 per cent in May, with average daily rate (ADR) slipping 2.5 per cent to $150.47. Revenue per available room (RevPAR) declined by 8.2 per cent to $96.88.

Many hotel markets in the Middle East saw negative results as a result of the Ramadan calendar shift from early June 2016 to late May 2017.

In the region, the UAE saw occupancy rates go down 7.1 per cent to 72 per cent, while ADR fell 6.1 per cent to Dh514.33 ($139.9). RevPAR slid by 12.8 per cent to Dh 370.43 ($100.8).

In addition to the aforementioned Ramadan calendar shift, a 5.3 per cent year-over-year increase in supply weighed on performance for the month. STR analysts note that corporate demand appears to be stable, with occupancy for group bookings (bookings of 10 or more rooms at a time) up 10.4 per cent for the month. Meanwhile, an 8.9 per cent decline in transient occupancy brought down overall performance.  

Occupancy rates in Africa also fell 0.9 per cent to 55.2 per cent, however, ADR and RevPAR climbed up 11.6 per cent to $99.2 and 10.5 per cent to $54.76 respectively.

South Africa witnessed a minor increase (0.5 per cent to 61.3 per cent) in occupancy levels, with ADR climbing 3.4 per cent to ZAR1,115.24 ($86.4) and RevPAR moving up 3.9 per cent to ZAR683.2 (52.9). - TradeArabia News Service