Mixed Q1 results for MENA hospitality players: STR
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Hotels in the Middle East reported negative results, while hotels in Africa reported mixed results for three key performance metrics, according to Q1 2016 data from STR.
The figures when compared with Q1 of 2015, the Middle East subcontinent reported a 3.3% decrease in occupancy to 71.9%. Average daily rate for the quarter was down 8.1% to US$188.55. Revenue per available room dropped 11.1% to US$135.63.
The Northern Africa and Southern Africa subcontinents experienced a 4.4% decrease in occupancy to 53.5%. However, average daily rate was up nine percent to US$107.58, and RevPAR increased 4.2% to US$57.56.
Lebanon reported decreases in each of the three key performance indicators: occupancy (-8.4% to 44.3%), ADR (-9.3% to LBP215, 601.32) and RevPAR (-17.0% to LBP95, 422.47). Travel to the country has also declined, reflected by a 5.1% decrease in demand for the quarter, while supply grew 3.7%.
Mauritius experienced a 4.7% lift in occupancy to 76.7% as well as double-digit growth in ADR (11.4% to MUR7, 416.66) and RevPAR (16.6% to MUR5, 687.28). The performance can be attributed to a 4.7% increase in demand combined with flat supply. March was the top RevPAR month of the quarter at 23.7%.
South Africa posted increases across all three key performance metrics with occupancy at 2.8% to 65.0%, ADR at 9.7% to ZAR1, 238.43 and RevPAR at 12.8% to ZAR805.32.
Amman, Jordan, saw a 3.8% increase in occupancy to 50.3%, but a 3.4% decrease in ADR to JOD111.13 left RevPAR nearly flat at 0.3% to JOD55.86. Supply went basically unchanged for the quarter, while demand grew 3.8%, leading to the increase in occupancy.
Cairo recorded positive results with occupancy rising to 7.8% during the quarter to 56.7%, ADR was up 5.9% to EGP837.72 and RevPAR increased 14.1% to EGP474.77. March was a particularly strong month with double-digit increases across key metrics, including a 26.7% spike in RevPAR. STR analysts cite an 11.1% increase in group business during the quarter as reason for a 10.2% overall lift in demand.
Jeddah reported decreases across occupancy with -9.9% to 67.3%, ADR was at -5.0% to SAR868.76 and RevPAR at -14.4% to SAR584.42. Occupancy and ADR during the quarter were hurt by a 4.2% increase in supply. At the same time, demand dipped 6.1%, and the pipeline in the market remains robust.
Compared with March 2015, the Middle East subcontinent reported a 0.4% decrease in occupancy to 75.4%. Average daily rate for the month was down 6.1% to US$188.06. Revenue per available room dropped 6.5% to US$141.74. The Northern Africa and Southern Africa subcontinents experienced a 5.9% decrease in occupancy to 56.4%. However, average daily rate was up 10.3% to US$107.21, and RevPAR increased 3.8% to US$60.49.
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