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RevPAR UP 13.2pc

MEA hotels see positive growth in September

MEA hotels report positive results in September

LONDON, October 27, 2015

Hotels in the Middle East and Africa (MEA) region witnessed positive growth across occupancy rates, average daily rates and revenue per available room (RevPAR) with RevPAR increasing 13.2 per to $103.25 in September, according to a report.

STR Global’s data for September also showed occupancy rates rise 0.1 per cent to 64.9 per cent and average daily rate increase 13.2 per cent to $158.98.

Taking a closer look, Bahrain reported a 7.8 per cent increase in occupancy to 59.3 per cent as well as double-digit growth in ADR (+18.2 per cent to $239.5) and RevPAR (+27.4 per cent to $142.1).

According to STR Global analysts, the upswing in year-over-year performance came as a result of an earlier Eid al-Adha. Demand growth (+19.8 per cent) outpaced supply growth (+11.2 per cent), and hotels capitalised with higher rates.

Dubai (UAE), on the other hand, saw key performance metrics slightly dip in September, reporting a 0.3 per cent decrease in occupancy rates to 76.1 per cent, 2.6 per cent decrease in ADR to $175.7, and a 3 per cent decrease in RevPAR $133.6.

Supply growth, however, outperformed (+5.4 per cent) demand growth (+5.1 per cent).

Jordan saw occupancy drop 1.1 per cent to 53.9 per cent. However, ADR (+3.8 per cent to $154.6) and RevPAR (+2.6 per cent to $83.2) each increased. As Jordan’s hotel industry continues to be affected by political unrest in the region, STR Global analysts note that international arrivals in the country are declining for the third consecutive year with Middle Eastern and European tourists accounting for a vast portion of the decrease. The slight upswing in September ADR and RevPAR came as a result of Eid al-Adha.

Cairo (Egypt) posted double-digit increases in each of the three key performance metrics. Occupancy increased 10.9 per cent to 57.3 per cent; ADR was up 13.3 per cent to $108.7; and RevPAR rose 25.7 per cent to $62.25. STR Global analysts attribute the performance to the return of international visitors to Egypt after the political unrest of late 2013 and early 2014. Travel resulting from Eid al-Adha also aided performance in the market.

The African market also posted positive results in September with Mauritius recording double-digit increases in occupancy (+16.8 per cent to 75.7 per cent) and RevPAR (+24.8 per cent to $92.23). ADR in the country was up 6.8 per cent to $121.9. Supply remained flat for the month, while demand surged 16.8 per cent due to an influx of international arrivals from Europe and Asia.

Johannesburg, South Africa, saw a 4.7 per cent increase in occupancy to 63.2 per cent, a 7.8 per cent rise in ADR to $63.07 and a 12.9 per cent increase in RevPAR to $39.87. Year-to-date ADR growth (+10.8 per cent) continues to drive performance in the market, while a high supply growth rate has affected absolute occupancy.

Lagos, Nigeria, reported double-digit growth across the three key performance measurements: occupancy (+17.6 per cent to 45.5 per cent); ADR (+16.5 per cent to $221.65); and RevPAR (+37.1 per cent to $100.9). Performance in Lagos has fluctuated throughout the year, and September performance was driven by an unbalance in demand growth (+22.6 per cent) and supply (+4.2 per cent). Year-to-date key performance indicators remain more modest in Lagos. – TradeArabia News Service




Tags: hotels | growth | MEA | September | STR |

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