Dubai’s hospitality market shines while others suffer
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Dubai’s hospitality market witnessed positive growth on all Key Performance Indicators (KPIs) through Q1 2013 compared to the same period last year, according to a report by Ernst & Young.
During 2012, approximately 3,500 new branded hotel rooms were added to Dubai’s hotel supply, including three major five-star hotel openings – Tower 1 JW Marriot Marquis, Rayhaan by Rotana and Fairmont – The Palm.The report concluded that Dubai’s hospitality market had absorbed the influx of new supply at an impressive rate and “continues to perform exceptionally well”.
However, other markets in the Middle East were not witnessing such positive results.
Yousef Wahbah, MENA head of transaction real estate at Ernst & Young, said April is seen as one of the transitional months between the peak season and the low summer season.
“The region’s hospitality markets witnessed widely varied performance indicators, due to the unique political and socioeconomic conditions present in each country,” he asserted.
During Q1 2013, average occupancy in Beirut fell to 56%, a decrease of 10% from Q1 2012, with average room rates decreasing by 23% for the same period.
For the month of April, Beirut’s average room rates decreased approximately 22% over April last year, with RevPAR declining by approximately 23%.
In Egypt, Cairo’s hospitality market witnessed a downward trend in Q1 2013 compared to Q1 2012, with RevPAR dropping by 10%.
Although average room rates increased by 5% through Q1 2013, the 5% decrease in average occupancy was the primary determinant in the market’s slight year-on-year decline, the report asserted.
Through April this year, Cairo hotels continued to experience a declining trend, with a decrease in RevPAR of 36% year-on-year, mainly impacted by a drop in average occupancy of 20% over the same period.
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