Friday 18 September 2020

Jeddah hotel occupancy, revenues continue to slump

JEDDAH, January 11, 2018

Jeddah's hospitality sector endured another slow month as occupancy and revenue rates continued to decline in December 2017, new data showed.

Figures released by STR revealed that hotel occupancy across the Saudi city averaged 45.1 per cent in December, down 8.4 per cent on the year-earlier period.

Data also showed that average daily rates (ADR) dropped 4.1 per cent to SR694.85 ($185) while revenue per available room (RevPAR) plummeted by 12.1 per cent to SR313.45 ($83.5).

Demand fell 2.0 per cent in Jeddah, while supply grew 7.0 per cent, figures showed.

STR analysts note that while room demand has fallen, a jump in new supply continues to worsen occupancy levels and pressure rates. The absolute occupancy level would be the lowest for any December on record in Jeddah, while the ADR value would be the lowest for a December since 2010. - TradeArabia News Service

Tags: hotels | Jeddah | Rates | Revenue | Occupancy | decline |

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