Mena hotels ‘perform well’ through summer
Dubai, October 29, 2013
“The hotel market performed very well across most of Mena in August,” said Yousef Wahbah, Mena head of Transaction Real Estate at EY, a major professional services organisation.
Although the summer months are generally considered the low season, the occasion of Eid Al Fitr helped improve occupancy rates, particularly in markets with favorable tourist attractions,” he added, commenting on the latest Middle East Hotel Benchmark Survey Report published by EY.
The overall average occupancy of Dubai hotels increased by 7.8 per cent percentage points (pp) in August year-on-year, with a further increase in average daily rate (ADR) of 11.7 per cent, a report said.
This resulted in a healthy increase in RevPAR (revenue per available room) of approximately 25.8 per cent.
This was mainly due to tourist arrivals from the GGC and the Mena region visiting Dubai during Eid Al Fitr as well as the Dubai Summer Surprises festival which attracts tourists from all around the world.
In August, Dubai’s hospitality market performance improved month over month, with ADR increasing from $179 in July 2013 to $213 in August 2013, which was also coupled with an increase in average occupancy of 19 per cent during the same period.
Abu Dhabi witnessed an increase in ADR in August 2013, from $128 to $145 year on year, resulting in RevPAR growth of 19.6 per cent during the same period.
Amman and Beirut
In the Levant region, Amman and Beirut average occupancy rates were higher in August 2013 than August 2012, mainly due to the celebration of Eid Al Fitr in August this year.
In August, average occupancy in Amman was registered at 63 per cent compared to 42 per cent during the same month last year. Although ADR was slightly lower by 1.3 per cent in the same period last year, RevPAR increased by an outstanding rate of 46.3 per cent.
Beirut’s hospitality market also recorded an increase in RevPAR during August this year, with RevPAR increasing from $69 in August 2012 to $86 in August 2013. This was due to an increase in average occupancy of approximately 12.0 per cent pp over the same period, from 35 per cent to 47 per cent.
Kuwait and Muscat
The hospitality market in both Kuwait and Muscat recorded an increase in RevPAR during August of 38.4 per cent and 37.1 per cent respectively.
Kuwait’s occupancy rates increased by 9 per cent pp in August 2013 compared to the same period last year, in addition, ADR jumped by 11.7 per cent during the same period from $277 to $309.
Muscat recorded an increase in average occupancy of 3 per cent pp when compared to the same period last year, which was coupled with a healthy increase in ADR from $166 in August 2012 to $211 in August 2013.
Makkah and Madinah
Makkah and Madinah’s hospitality market witnessed a decline in August 2013, which was due to the earlier start of Ramadan.
In August, Makkah’s average occupancy rates declined by 22 per cent compared to the same period last year, the decrease was coupled with a drop in ADR from $723 to $613 during the same period, which resulted in RevPAR decrease of 39.5 per cent.
Madinah also witnessed a decline of 22 per cent in average occupancy during the same period, coupled with a decrease in ADR from $468 to $350, resulting in a 48.1 per cent decrease in RevPAR.
Continuing the downward trend seen in July, Cairo’s RevPAR dropped by 61.6 per cent in August 2013 compared to August 2012 figures, which was mainly due to the decrease in average occupancy by 23 per cent from the previous year.
“As we enter the latter part of the year, we expect the majority of the Mena hotel market to continue improving,” said Wahbah.
“Markets such as the UAE in particular will benefit as the convention business season begins with events such as Gitex Shopper and Cityscape which are expected to prop the hospitality market further,” he concluded. – TradeArabia News Service