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Mideast hotels see hotel occupancy levels drop

MEA February hotel occupancy drops to 67.2pc

LONDON, March 25, 2015

The Middle East and African (MEA) region reported a 0.2 per cent decrease in hotel occupancy to 67.2 per cent in February this year, a recent report said.

However, the region posted a 1.3 per cent rise in revenue per available room (RevPAR) to $118.64 and a 1.5 per cent increase in average daily rate (ADR) to $176.64, added the latest report from STR Global, a leading source of global hotel data.

The moderate increase in RevPAR was driven primarily by ADR, according to Elizabeth Winkle, managing director of STR Global.

When looking at the three MEA sub-regions, Northern Africa posted the top increases in all three performance metrics. The sub-region experienced a 3.7 per cent improvement in occupancy to 47.1 per cent, a 13.8 per cent increase in RevPAR to $40.71 and a 9.7 per cent rise in ADR to $86.39.

The Middle East sub-region saw decreases in two of the three major metrics, including a 1.3 per cent decline in RevPAR to $159.61.

“Despite the Middle East showing a decrease in RevPAR, the sub-region still has the strongest figures coming out of the MEA”, Winkle said. “The Middle East recorded an ADR in excess of $200.00, including occupancy levels above 70 per cent. Whilst Northern Africa is posting strong improvement, occupancy remains below 50 per cent in that sub-region”.

Amongst the key countries in MEA, Egypt experienced significant increases in RevPAR (up 33.3 per cent to $36.75) and ADR (up 28.9 per cent to $78.00). When looking at markets within the region, Cairo, Egypt, reported the highest increases in both occupancy (up 39.7 per cent to 51.2 per cent) and RevPAR (up 43.9 per cent to $52.88).

“Egypt’s occupancy managed to increase for the eighth consecutive month”, Winkle said. “The ADR growth also has been positive, continuing the strong ADR growth since 2013. Cairo managed to increase RevPAR by 43.9 per cent; however, this is still one of the lowest values in comparison to other sub-markets in the region”.

Amongst countries, Nigeria reported decreases in all three performance metrics, including a 36.3 per cent decline in RevPAR to $100.59.

“Due to insecurity crisis issues in the region, Nigeria experienced a 22.9 per cent decline in occupancy to 45.4 per cent but is still maintaining high ADR levels exceeding $220.00”.

Highlights among the Middle East/Africa region’s other key markets for February include (year-over-year comparisons:
• In addition to Cairo, one other market reported an occupancy increase of more than 20 per cent: Beirut, Lebanon (up 24.7 per cent to 49.3 per cent).
• Within Nigeria, the sub-market of Lagos reported the largest occupancy decrease, falling 21.2 per cent to 50 per cent.
• Abu Dhabi, UAE, had the highest increase in ADR (up 27.4 per cent to $187.63). Doha, Qatar, followed with a 10.8 per cent increase in ADR to $202.47.
• Apart from Cairo, two other key markets reported RevPAR increases of more than 25 per cent: Beirut (up 29.7 per cent to US$73.28); and Abu Dhabi (up 29.2 per cent to $151.15).
• Three markets had double-digit RevPAR decreases: Lagos (down 29.8 per cent to $111.15); Amman, Jordan (down 19.2 per cent to $79.61); and Muscat, Oman down 10.2 per cent to $191.01). – TradeArabia News Service




Tags: hotel | Middle East | Africa | RevPAR | Occupancy |

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