Wednesday 27 January 2021

ME hotels post mixed results in 2019; Africa results positive

LONDON, January 23, 2020

Hotels in the Middle East reported mixed performance results in 2019, while hotels in Africa posted positive results across the three key performance metrics, according to data from STR - a leading market research firm.

Occupancy levels in the Middle East moved up 2.3 per cent to 66.2 per cent but average daily rate (ADR) declined 7.2 per cent to $143.70, forcing revenue per available room (RevPAR) to drop 5.1 per cent to $95.09.

In Beirut, Lebanon, occupancy rates were recorded at 53.4 per cent in 2019, an 8.6 per cent drop compared to the same period in 2018. ADR was up 6.9 per cent to LBP245,325.04 ($162.7) but RevPAR declined 2.3 per cent to LBP131,066.36 ($86.9).

While Beirut recorded its highest Q1 RevPAR level (LBP128,581.91/$85.2) since 2012, the Q4 level in the metric (LBP60,847.25/$40.3) was the lowest for any fourth quarter in STR’s Beirut database. STR analysts note that protests and subsuquent political turmoil in Lebanon negatively affected performance near the end of the year and pulled down total-year numbers in the market. November and December RevPAR dropped significantly, down 75.7 per cent and 68.0 per cent, respectively.

In Africa, occupancy rates climbed up 1.1 per cent to 61.3 per cent in 2019 with ADR also jumping 1.5 per cent to $109.33. RevPAR was also up 2.6 per cent to $67.01.

In Sharm El Sheikh, Egypt, occupancy was up 10.3 per cent to 60.0 per cent, pushing ADR up 9.9 per cent to EGP1,196.18 ($75.5). RevPAR increased signinficantly by 21.2 per cent to EGP717.73 ($45.3).

Occupancy in Sharm El Sheikh has grown for 31 consecutive months. STR analysts note that double-digit demand growth (up 10.3 per cent) was coupled with flat supply comparisons, continuing the consistent occupancy growth and lifting pricing confidence. - TradeArabia News Service


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