Middle East hotel figures slump in 2015

Hotels in the Middle East reported negative year-end 2015 results, while hotels in Africa recorded mostly positive results in the three key performance metrics, according to data from STR Global. 

Saudi Arabia witnessed a 2.6% decrease in occupancy.
Saudi Arabia witnessed a 2.6% decrease in occupancy.

Compared with 2014, the Middle East witnessed a 2% decrease in occupancy to 67.4%.

Average daily rate for the year was down 2.6% to US $192.82, while revenue per available room (RevPAR) dropped 4.6% to US $129.98.

This was in contrast to the Northern Africa and Southern Africa subcontinents, which experienced a 0.2% increase in occupancy to 57.3%.

Average daily rate was up 7.1% to $111.34, and RevPAR increased 7.3% to $63.74.

Egypt recorded a 4.2% increase in occupancy to 53.7% as well as double-digit growth in ADR (+18.9% to EGP616.46) and RevPAR (+23.9% to EGP331.16).

Egypt’s RevPAR increased year over year by more than 40.0% in six of the first seven months in 2015.

Back in the Middle East, Saudi Arabia saw a 2.6% decrease in occupancy to 62.4%, but noted increases in ADR (+3.6% to SAR799.38) and RevPAR (+0.9% to SAR498.49).

According to STR Global analysts, the country’s conflict with Yemen and the oil price decline have affected hotel performance in recent months.

However, rate growth drove a slight RevPAR increase for the year.

The United Arab Emirates reported decreases in each of the three key performance metrics: occupancy (-0.6% to 74.8%), ADR (-6.2% to AED705.75) and RevPAR (-6.7% to AED528.19).

Supply growth (+6.2%) outpaced demand growth (+5.6) in 2015, causing the decline in occupancy, and nearly flat revenue led to the declines in ADR and RevPAR.

Compared with December 2014, the Middle East subcontinent reported a 3.4% decrease in occupancy to 66.8%.

ADR for the month dropped 4.1% to $204.27. RevPAR fell 7.3% to $136.52.

 

You might also like

Comments are closed.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Close