Hotels in Jeddah reported growth across all major performance indicators as an increase in average rates and non-room revenues boosted bottom line yields, according to HotStats.
Occupancy for the month posted a growth of 1.5% to 79.3%, rising for the fourth consecutive month. Average Room Rates increased 5.2% closing the month at US$252.22 and boosting RevPAR by 7.2% to US$199.98. Increased revenues from food and beverage consumption, along with higher conferencing revenues led to TRevPAR growth of 6.7%. Strong top-line revenues coupled with reduced operating and payroll costs boosted GOPPAR 7.7 % to US$145.76.
“February has been a strong month for hotels in Jeddah, as it marks the advent of peak season that continues in following months. Jeddah is heavily driven by corporate activity. The hosting of several events marked the return of corporate demand. Hotels reaped benefits of increased corporate demand with higher food and beverage consumption, coupled with conferencing and banqueting revenues growing five percent from the previous year,” said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.