Oman hotel occupancy rates up 54.5pc
Muscat, May 14, 2013
The three to five-star hotels in the Omani capital recorded solid growth last year with the overall occupancy rate in the five star hotels across the Sultanate increasing to 54.5 per cent from 47.9 per cent in 2011, said a report.
The four-star hotels witnessed an increase of 54.2 per cent rise in occupancy over last year's 52.4 per cent, stated Cluttons, the real estate specialist which has enjoyed a dedicated Middle Eastern presence since 1976.
The number of three to five-star hotel rooms in the Muscat area is set to double over the next five years, it stated.
The market is also characterised by a notable number of new developments. Cluttons predicts that these projects are set to double the supply of three to five star hotel rooms in the Muscat Governorate over the next five years.
Meanwhile data released by the hospitality consultancy, STR Global, shows that average annual occupancy for higher rated Muscat hotels increased by 14.3 per cent to 59.6 per cent in 2012.
However, the government figures indicate that the green shoots of recovery being seen in the four and five star hotel sector are generally being driven by Omani rather than foreign guests.
The number of Omani guests has increased by 70 per cent from 2009 to 2012, while the number of GCC and European guests, despite showing signs of improvement, remains below those for 2009.
According to Cluttons, the occupancy rates remained significantly below 2008 national averages of 68.1 per cent for five star hotels and 66.5 per cent for four star hotels.
Four and five star hotel revenues have shown a 12.5 per cent (RO15 million) increase in 2012 in comparison to 2011, but average revenue per guest remains at the same level seen in 2009, it added.
Cluttons’ research shows a significant number of new hotels in the planning or development stage in the Muscat capital area. These include:
•The five star Kempinski Hotel under development at The Wave by the Omani Hospitality Company, scheduled to be completed during the first half of 2015
•The four star Holiday Inn Seeb, which is being developed for Action Hotels and is expected to open in mid-2013
•The Panorama, development by Allied Real Estate, is currently under construction in Al Khuwair and will provide a Millennium Hotel and Somerset Serviced Residences
•The proposed InterContinental Hotel at Muscat Hills Golf & Country Club
•The five star Azaiba Hotel under construction at Airport Heights
•The upcoming Oman Convention & Exhibition Centre, which will provide four high end hotels, including a Crowne Plaza.
The four-star Best Western Premier has already opened in Al Khuwair area last year.
Higher rated hotels are starting to show some signs of improvement in performance after a noticeable slump following the global financial downturn in 2008, said the report by Cluttons.
The property expert believes the increased supply of highly rated hotels will provide a further impetus to the sector by offering greater competition and choice to hotel guests. "We expect the number of three to five-star hotel rooms in Muscat area to double over the next five years," it added.-TradeArabia News Service