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DAILY RATES TOO DOWN

Mideast hotel occupancy rates drop to 71.1pc

LONDON, May 25, 2016

Hotels in the Middle East reported negative results in key performance metrics this April, posting a 1.8 per cent decrease in occupancy to 71.1 per cent compared to April 2015, said a report.

Average daily rate for the month was down 10.8 per cent to $174.18 and revenue per available room dropped 12.4 per cent to $123.79 , according to a report by STR.

Kuwait reported decreases across the three key performance metrics: occupancy (down 3.0 per cent to 58.0 pre cent), ADR (down 2.1 per cent to KWD72.60) and RevPAR (down 5.1 per cent to KWD42.12). Supply in the country has grown 6.1 per cent year to date, and Kuwait has experienced occupancy decreases in nine of 10 months following the June 2015 bombing of the Imam al-Sadiq Mosque. July 2015 was the only month during that period with positive occupancy performance due to Eid al-Fitr.

Morocco reported an 8.2 per cent decrease in occupancy to 57.4 per cent, an 8.3 per cent drop in ADR to MAD1,157.28 and a 15.9 per cent drop in RevPAR to MAD664.24.

Saudi Arabia recorded decreases in each of the three key performance indicators. Occupancy in the country fell 2.1 per cent to 69.9 per cent; ADR was down 7.4 per cent to SAR600.36; and RevPAR dropped 9.3 per cent to SAR419.36. Demand growth (up 4.1 per cent) failed to keep pace with supply (up 6.3 per cent), and ADR reached its lowest level since July 2010.

Abu Dhabi, UAE, saw relatively flat occupancy performance (down 0.7 per cent to 76.3 per cent) but double-digit decreases in ADR (down 12.4 per cent to Dh496.16) and RevPAR (down 13.0 per cent to Dh378.60). Occupancy remained steady as supply growth remained subdued at 3.3 per cent. However, rate dipped to its lowest absolute level for the month of April since 2005.

Riyadh, Saudi Arabia, reported decreases in each of the three key performance measurements: occupancy (down 7.3 per cent to 64.4 per cent), ADR (down 2.6 per cent to SAR866.22) and RevPAR (down 9.7 per cent to SAR558.14). While Riyadh mirrors the performance of the entire country, the market did experience a high occupancy level of 92.0 per cent on April 19 during the first day of the Saudi Arabian High Performance Computing Conference and Exhibition. - TradeArabia News Service
 




Tags: hotel | Occupancy | drop | Middle | East |

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