Jeddah leads in occupancy levels for May 2012: HotStats
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Hotels in Jeddah experienced a 9.0% growth in occupancy during the month of May, according to the latest HotStats survey of full service hotels in six MENA cities by TRI Hospitality Consulting.
Average occupancy at four and five star chain hotels in the city reached 82.9% with Average Room Rates (ARR) increasing 11.8% to US$220.15 during the month, compared to the same period last year. Revenue Per Available Room (RevPAR) for the month surged 25.5% to US$182.58 leading to strong growth in profits in terms of Gross Operating Profit Per Available Room (GOPPAR), increasing by 29.7% to US$142.51.
“Jeddah hotels continue to experience increasing demand with occupancy levels reaching the highest in the last 36 months. The strengthening of average rates, occupancies and RevPAR has funnelled directly through to profitability of hotels with the GOPPAR increasing by 29.7%,” commented Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
Riyadh hotels witnessed a decline in occupancy, achieving 67.3% occupancy in May, 3.3% lower than the same month last year. Despite a drop in ARR by 4.6% to US$255.33, Riyadh has reported the highest ARR out of the six cities surveyed. However the reduction in Total Revenue Per Available Room (TRevPAR) by 4.2% directly impacted profitability with the GOPPAR falling by 8.9% to $164.84.
“The drop in occupancy levels of hotels in Riyadh for May indicates the start of the annual summer slowdown. Historically occupancy levels fall to levels below 40% during the summer months as corporate demand falls or shifts to Jeddah as a result of the relocation of the King’s Court. We anticipate a further reduction in rates in Riyadh in the coming months as hotels try to capture the remaining demand and maintain profitability” said Goddard.
In Egypt, hotels in Sharm El Sheikh experienced double digit growth in occupancy in May, achieving 62.2% during the month, 21.1% above the same month last year. However, ARR remained stagnant albeit with a marginal fall of 0.9% to US$42.09. A greater control over expenses, particularly payroll, has resulted in a 184.7% increase in GOPPAR to US$16.91 up from US$5.94 in the same month last year.
Cairo hotels recorded a 13.8% increase in occupancy to 51.4% in May, however ARR fell by 15.6% to US$101.63. The increase in occupancy absorbed the decrease in rates with RevPAR rising 15.4% to US$52.24. Profitability has continued to improve with a 17.7% increase in GOPPAR to US$45.38.
Hotels in Dubai reported growth in revenues and profits while hotels in Abu Dhabi continued to report drop in rates and profits in May 2012, according to the latest HotStats survey of full-service hotels in six MENA cities by TRI Hospitality Consulting.
Revenue Per Available Room (RevPAR) in Dubai increased 9.6% to US$195.47 in May driven by a 6.5% growth in Average Room Rate (ARR) to US$247.96 and a nominal increase of 2.3% in occupancy to 78.8% compared to the same month last year. In terms of profits, GOPPAR for the month saw a growth of 12.4% to US$145.93.
Performance levels for hotels in Abu Dhabi continued to drop in May compared to the same period last year. A marginal reduction in occupancy levels by 0.7 percentage points to 64.0% coupled with a 14.0% fall in ARR to $128.67, resulted in RevPAR dropping 15.0% to $82.33. The fall in revenues resulted in a GOPPAR of $69.79, 17.3% lower than the same period last year.
“Our HotStats data for Abu Dhabi hotels in May further reiterates the overall reduction in rates, occupancy and profitability witnessed in 2012. Hotels have seen ARR and RevPAR fall by 16.5% and 15.6% respectively since January 2012 resulting in a 20.8% fall in profitability (GOPPAR),” said Goddard.