MEA occupancies on a growth path

The MEA region reported a 0.9% increase in occupancy to 49.3%
The MEA region reported a 0.9% increase in occupancy to 49.3%

The Middle East and Africa region reported positive performance during July 2014 as per a recent report compiled by STR Global. The region reported a 0.9% increase in occupancy to 49.3%, a 6.9% increase in average daily rate to US$156.54 and a 7.9% increase in revenue per available room to US$77.15.

“On a 12-month-moving-average basis, supply and demand growth are on par at 2.8%, which means occupancy growth is flat, at 61.4%,” said Elizabeth Winkle, managing director of STR Global.

“Ramadan occurred entirely in July which resulted in lower than usual levels of demand in what is typically the region’s weakest month of the year. The confluence of these factors resulted in lower than average performance for the month. We view this as an anomaly and would expect performance to improve in August. In Makkah and Medina, we saw occupancy growth well over 20% for both markets in July. Makkah also saw a strong ADR increase, up 23.1% in July,” added Winkle.

Cairo witnessed a 73.9% occupancy increase to 29.3% and Cape Town was 15.8% to 52.4%. Amman fell 20.2% in occupancy to 34.4%, reporting the largest decrease. Nairobi followed with a 16% decrease to 55.3%. Jeddah increased 12.5% in ADR to US$286.28, achieving the only double-digit increase in that metric. Nairobi witnessed a dip with -5.4% to US$141.62 and Riyadh a -4.8% to US$207.05 in ADR decreases.

Three markets experienced RevPAR growth of more than 15% – Cairo with 82.6% to US$30.57, Manama with 20.1% to US$72.94 and Cape Town with 15.4% to US$49.76. Amman fell 21.4% in RevPAR to US$54.86, posting the largest decrease while Nairobi followed with a 20.5% decrease to US$78.29.

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