ME hotel revenues down in May, Africa results mixed
DUBAI, June 25, 2016
The Middle East region's hotels reported negative results in key performance metrics in May, while Africa reported mixed results in the three key performance metrics of occupancy, average daily rate (ADR) and revenue per available room (RevPAR) when reported in US dollar constant currency, according to a report.
The hotel occupancy rates remained flat in May at 69 per cent, while the (ADR) fell 4.7 per cent to $156.75, and RevPAR registered a drop of 4.6 per cent to $108.34 over the same period last year, stated STR Global, a leading provider of global hotel data, in its report.
Meanwhile, Africa experienced a 5.8 per cent decrease in occupancy which fell to 56.1 per cent. However, the average daily rate was up 8.8 per cent to $100.16, and RevPAR increased 2.5 per cent to $56.15, it added.
Egypt saw a 15.7 per cent drop in occupancy to 52.8 per cent, but a 24.8 per cent rise in ADR to E£721.66 drove a 5.3 per cent increase in RevPAR to E£381.
According to STR analysts, a significant decrease in the country’s overall demand was due to political unrest and the EgyptAir plane crash on May 19. However, hoteliers pushed rates and managed to increase RevPAR for the second consecutive month.
Performance varied at the market level. Cairo reported an occupancy increase of 10.6 per cent, while Sharm El Sheikh (-39.7 per cent) and the Red Sea Resorts (-40.7 per cent) saw significant declines in the metric, it stated.
In the Gulf region, Oman reported decreases across the three key performance metrics: occupancy (-5.0 per cent to 49.4 per cent), ADR (-8.7 per cent to RO56.54) and RevPAR (-13.3 per cent to RO27.95). The absolute RevPAR level was the worst for a May in Oman since 2011, caused in part by a 9.9 per cent increase in supply.
However, the Saudi city of Jeddah put up a strong show registering a 5.9 per cent jump in occupancy to hit 78.4 per cent as well as double-digit increases in ADR (+18.3 per cent to SR1,079.42) and RevPAR (+25.3 per cent to SR846.60).
May was the strongest occupancy and rate month in Jeddah since September 2015, reversing a trend of negative performance since September 2015, said the report.
Tunisia experienced decreases in occupancy (-11.7 per cent to 42.5 per cent) and RevPAR (-9.1 per cent to TND68.43). ADR was up 2.9 per cent to TND161.04, stated the report.
Like many North African countries, Tunisia has seen consistent and significant declines in demand following the terrorist attack in Sousse last year. Figures from the Tunisia Ministry of Tourism showed a 47.6 per cent year-over-year decrease in the number of tourist receipts through April. Year to date, hotel demand in the country is down 12.8 per cent, it added.
On the Jordanian market, STR Global said Amman saw an 8.5 per cent increase in occupancy which hit 66 per cent as well as double-digit growth in ADR (+11.2 per cent to JD123.14) and RevPAR (+20.7 per cent to JD81.30).
Amman’s supply remained flat through the first five months of 2016 while demand has risen steadily. May produced the highest absolute occupancy since August 2014 and the highest ADR since May 2014, helped by the Jordan Forex Expo & Awards 2016 (30-31 May) and SOFEX Jordan global security conference and exhibition (9-12 May), it said.
Cape Town, South Africa, posted a 9.2 per cent increase in occupancy to 60 per cent as well as double-digit increases in ADR (+9.4 per cent to ZAR1,260.55) and RevPAR (+19.4 per cent to ZAR756.48).
According to STR, the demand has increased year over year for 10 consecutive months in the market as the weakened South African Rand made the country a cheaper destination for international tourists.
In addition, supply has decreased slightly in each of the last four months, it added.-TradeArabia News Service