Wednesday 19 June 2019

Occupancy uplift drives revenue growth for MEA hotels

LONDON, September 24, 2018

An uplift in room occupancy levels helped drive growth in revenue and profit for hotels in the Middle East and Africa in August,  according to the latest figures.

Hotels in the Middle East recorded a 2.0 per cent increase in occupancy levels, to 63.4 per cent, which helped drive a 14.5 per cent increase in revenue per available room (RevPAR), to $107.50. Average daily rate (ADR) also jumped 12.2 per cent to $169.63, data from STR showed.

In Africa, occupancy levels climbed 2.2 per cent to 63.1 per cent in August, pushing RevPAR up 13.2 per cent to $72.77. ADR was also up 10.8 per cent, reaching $115.36, for the month.

The strongest performing hotel markets in both regions in August were Bahrain and Nairobi.

Manama, Bahrain
For hotels in Bahrain, demand growth (up 26.9 per cent) was in the double digits for the third consecutive month, and absolute occupancy (up 17.2 per cent to 60.4 per cent) reached its highest level for an August in the market since 2008.
ADR moved up 7.5 per cent to BD63.50 ($167.3) and RevPAR climbed 26.0 per cent to BD38.33 ($101.0)

STR analysts note that year-over-year performance comparisons were enhanced by the calendar shift to an earlier Eid al-Adha than 2017.     

Nairobi, Kenya
Hotels in Kenya witnessed demand (room nights sold) jump 83.1 per cent — marking the eighth consecutive month with a year-over-year increase in the metric.

This drove occupancy up 59.2 per cent to 56.5 per cent and RevPAR up 51.4 per cent to KES6,529.02 ($64). ADR, however, dropped 4.9 per cent to KES11,559.25 ($113.3).

According to STR analysts, Nairobi is recovering from the effects of the 2017 presidential elections and associated incidents of violence which likely discouraged visitors. According to The World Travel & Tourism Council, the number of international visitors to Kenya is expected to reach 1.4 million for total-year 2018. - TradeArabia News Service

Tags: Middle East | Africa | hotels |

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