The hotel industry in the Middle East reported negative performance results during the first quarter of 2017, while hotels in Africa posted growth across the three key performance metrics, according to data from STR - a leading market research firm.

Occupancy in the Middle East dropped 1.4 per cent to 70.5 per cent while average daily rate (ADR) slipped 6.8 per cent to $173.06, pushing revenue per available room (RevPAR) down 8.2 per cent to $122.07.

Performance was down across all submarkets, with Al Khobar/Dammam and Jeddah reporting the most significant RevPAR declines (down 38.6 per cent and down 33.3 per cent, respectively). Demand fell 6.4 per cent in the country, while supply grew 4.6 per cent.

Overall, occupancy rates in Saudi Arabia slid 10.4 per cent to 58.3 per cent and ADR was down 12 per cent to SR578.09 ($153.9). RevPAR took the steepest fall at 21.2 per cent, settling at SR337.29 ($89.8) for Q1.

Lebanon, however, witnessed an uplift in Q1 with occupancy rates going up 10.1 per cent to 49.3 per cent, ADR climbing 0.8 per cent to LBP219,811.07 ($142.5), pushing RevPAR up 11 per cent to LBP108,302.14 ($70.2).

Lebanon’s quarterly performance was lifted by a particularly strong March, as RevPAR rose 30.9 per cent due to 25.8 per cent uplift in occupancy. At the market level, Beirut recorded strong performance growth for March (RevPAR: up 29.4 per cent) and the entire first quarter (RevPAR: up 12.5 per cent). According to STR analysts, Beirut has experienced a recent surge in tourism, helped by promotional efforts and government initiatives to facilitate political stability.

Africa also posted positive results in Q1 with occupancy rates jumping 5 per cent to 56 per cent and ADR going up 9.8 per cent to $111.15. RevPAR shot up 15.3 per cent to $62.19.

In Tunisia, occupancy climbed up 31.2 per cent to 42.5 per cent while ADR slid 2.0 per cent to TND161.58 ($69.1). RevPAR was up 28.6 per cent to TND68.70 ($29.3).

STR analysts note that Tunisia’s occupancy growth came in comparison with months of significant decline in 2016. A low comparison base remained during that time period due to the 2015 terrorist attack in Sousse. Nonetheless, positive indications can be seen in the eight projects currently in construction in the country and the additional five projects in various phases of planning. Several global brands are included in the new supply set to enter the market. - TradeArabia News Service