Hotels in the Middle East reported mixed results across key performance metrics in July. Occupancy rates jumped 58 per cent while average daily rate (ADR) and revenue per available room (RevPAR) dropped 5.9 per cent to $161.82 and 11.9 per cent to $93.88 respectively compared to July 2015, said a report.

Kuwait recorded increases across the three key performance metrics: occupancy (over 5.1 per cent to 38.0 per cent), ADR (over 0.8 per cent to KWD66.36/$219) and RevPAR (over 5.9 per cent to KWD25.21/$83.2). Performance was primarily driven by a 25.9 per cent increase in occupancy in the Kuwait Area submarket. However, in the Kuwait City submarket, occupancy fell 3.8 per cent, showed data released by STR, a leading provider of global hotel data.

Qatar reported decreases in each of the three metrics. Occupancy in the country fell 6.6 per cent to 53.3 per cent; ADR was down 0.8 per cent to QAR491.68($135); and RevPAR dropped 7.3 per cent to QAR261.93 ($71.9). According to STR analysts, the month’s performance was mostly affected by an 8.0 per cent year-over-year increase in supply.

Performance of featured markets for July 2016

Beirut, Lebanon, saw a 7.3 per cent increase in occupancy to 60.2 per cent. However, ADR was down 12.8 per cent to LBP234,510.72 ($155), and RevPAR dropped 6.4 per cent to LBP141,258.21 ($93.4). The absolute occupancy level was the highest for a July in Beirut since 2011. The market’s ADR, however, has decreased year over year for all seven months in 2016, due in part to a 2.9 per cent year-to-date increase in supply.

Dubai, UAE, experienced increases in occupancy (over 17.6 per cent to 67.5 per cent) and RevPAR (over 7.5 per cent to Dh365.08/$99.3), while ADR dropped 8.6 per cent to Dh540.60 ($147). The market’s demand was up 24.6 per cent year over year with a lift from Eid al-Fitr festivities. At the submarket level, the highest absolute occupancy levels were reported in Jumeirah Palm & Beaches (74.9 per cent) and the Deira & Airport Area (72.0 per cent). ADR continues to be affected by new supply (over 5.9 per cent in July).

Meanwhile Africa experienced a 4.6 per cent increase in occupancy to 56.9 oer cent, a 10.8 per cent rise in ADR to $103.42 and a 15.9 per cent spike in RevPAR to $58.89.

Johannesburg, South Africa, reported a 5.9 per cent decline in occupancy to 59.2 per cent, but an 8.7 per cent rise in ADR to ZAR908.85($64.6)pushed RevPAR up 2.3 per cent to ZAR537.74 ($38.2). The devaluation of the South African Rand has made the country an attractive tourist destination, and Johannesburg hoteliers have capitalised with increased rates, according to STR analysts. ADR has grown in year-over-year comparisons for 36 consecutive months. STR analysts cite political tensions prior to the August 3 elections as a reason behind lower occupancy for July 2016. - TradeArabia News Service