Mixed fortunes for Middle East hospitality sector
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STR Global’s latest survey of the hospitality industry worldwide was one of mixed fortunes for the Middle East, with declining hotel occupancy and average daily rates (ADRs) countered by the region accounting for the highest global ADR of $201.In the survey, which accounted for the first six months of 2010, the Middle East also enjoyed the world’s highest revenue per available room (revPAR) result of $125.”The first six months of 2010 saw a mixed performance across Middle East/Africa,” said Elizabeth Randall, Managing Director of STR Global in a statement. “The Middle East was the only sub region globally that still saw both occupancy and ADR declines for the first half. Nonetheless, Middle Eastern hotels still achieved the highest ADR (US$201) and RevPAR (US$125) of all the global sub regions. “As the addition of new supply entering the Middle East hasn’t majorly slowed down over the past 18 months, showing a 10 %increase year-to-date, the increasing demand (+8% YTD) had a harder time flittering through into growing occupancy and ADR growth.”Beirut, Lebanon, was the only Middle East market to report occupancy increases - up 22.6% to 69.3%, while Abu Dhabi reported the largest decreases across the three key performance sectors, with occupancy down 23.8% to 54.9%, ADR down 29.2% to $157.41, and RevPAR falling 46.1% to $86.46.Abu Dhabi’s disappointing results dragged the UAE down overall, with occupancy rates down 7% to 58.6%.
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