Hotels in the Middle East reported negative results in key performance metrics this February, posting a 5.3  per cent decrease in occupancy to 70.2 per cent compared to February 2015, said a report.

Average daily rate for the month was down 10.5 per cent to $182.45 and revenue per available room dropped 15.2 per cent to $128.12, according to a report by STR Global.

Qatar saw decreases across the three key performance metrics: occupancy (down 16.4 per cent to 65.3 per cent), ADR (down 9.5 per cent to QAR493.92) and RevPAR (down 24.4 per cent to QAR322.72). The country’s hotel performance has fluctuated due to supply growth at 4.7 per cent for total-year 2015 and 6.8 per cent for year-to-date 2016. STR analysts also cite a slowing in international arrivals due to a drop in oil prices and an increase in security concerns.

Dubai saw a 3.5 per cent decrease in occupancy to 82.5 per cent as well as double-digit drops in ADR (down 11.6 per cent to Dh833.78) and RevPAR (down 14.7 per cent to Dh687.63). With significant supply growth outpacing demand, occupancy and ADR levels in Dubai have each been affected.

Egypt reported decreases in occupancy (down 8.6 per cent to 43.1 per cent) and RevPAR (down 3.2 per cent to EGP263.16) but a rise in ADR (over 5.9 per cent to EGP610.85). With the country’s occupancy falling as a result of political and economic unrest, hoteliers have raised rates to maximise RevPAR. Egypt saw RevPAR grow 23.5 per cent in 2015, creating a high base for comparison. However, since the controversial plane crash in the Sinai Peninsula, demand has pointed downward.

Beirut, Lebanon, reported a 1.9 per cent decrease in occupancy to 48.4 per cent, an 8.9 per cent drop in ADR to LBP203,858.09 and a 10.6 per cent decline in RevPAR to LBP98,605.75. According to STR analysts, Beirut hotels have struggled since September due to political unrest in the country and rising supply in the market.

Jordan, however, saw healthy growth in occupancy (over 17.0 per cent to 46.3 per cent) and RevPAR (over 8.2 per cent to JOD43.81). ADR was down 7.5 per cent to JOD94.70. STR analysts believe that cheaper rates are positively affecting demand in Jordan, which increased 17.0 per cent in February to significantly outpace flat supply performance. - TradeArabia News Service