April seemed unfavourable for the Middle East hospitality sector as hotels reported negative performance results during the month, new data revealed.
According to data from STR, occupancy levels in the Middle East slipped 4.4 per cent to 72 per cent, with average daily rate (ADR) declining 4.5 per cent to $163.76. Revenue per available room (RevPAR) dropped by 12.1 per cent to $115.45.
In the region, Makkah witnessed a significant dip in the three performance metrics, with occupancy slipping 12.2 per cent to 66.4 per cent and ADR dropping 17.9 per cent to SR387.12 ($103.1). RevPAR recorded the steepest fall of 27.9 per cent to SR257.23 ($68.5).
STR analysts note that Makkah's absolute occupancy level was the lowest for an April since 2010, while absolute ADR was the lowest for the month since 2007. Significant supply growth (up 6.2 per cent) has been the main driver of negative performance in the market. Until a 6.7 per cent demand decrease in April, the market had reported four consecutive months of demand growth.
Hotels in Africa also posted growth across the three key performance metrics in April, recording a rise of 6.3 per cent to 61.8 per cent in occupancy rates, with ADR and RevPAR ascending rapidly as well. ADR was recorded at $119.79, up 4 per cent, while RevPAR climbed 10.5 per cent to $73.99.
In the region, Tunisia posted favourable rates, recording a 7.7 per cent climb in occupancy rates to 53.8 per cent. ADR moved up 17.2 per cent to TND170.73 ($66.7) and RevPAR also increased 26.2 per cent to TND91.91 ($35.9).
A 1.3 per cent increase in supply is the highest for any month in Tunisia since November 2007. At the same time, the absolute ADR and RevPAR levels were the highest for any April on record in the country. The occupancy level was the highest for an April since 2009. STR analysts credit the boost in performance to increased tourism in the market.
Holiday island Mauritius recorded mixed results, with occupancy levels dropping 9.5 per cent to 74.6 per cent and ADR and RevPAR climbing 12.8 per cent to MUR8,471.64 ($237.8) and 2.1 per cent to MUR6,318.73 ($177.4), respectively.
STR analysts note that the absolute ADR and RevPAR levels were the highest for any April on record in Mauritius. The year-over-year ADR growth was the sole driver of RevPAR, as a decline in demand (down 8.6 per cent) lowered occupancy. - TradeArabia News Service