Monday 3 October 2022

Mixed performance by MEA hotels in January

LONDON, February 26, 2018

Hotels in the Middle East reported mixed performance results in January, while hotels in Africa posted growth across the three key performance metrics, according to data from STR - a leading market research firm.

Occupancy levels in the Middle East moved up 1.9 per cent to 69.1 per cent but average daily rate (ADR) declined 3.4 per cent to $170.28, forcing revenue per available room (RevPAR) to drop 1.6 per cent to $117.75.

In Saudi Arabia, occupancy rates were recorded at 59.5 per cent in January, a 6.4 per cent increase comapred to the same period in 2017. ADR was down 5.2 per cent to SR566.34 ($150.8) while RevPAR moved up slightly by 0.9 per cent to SAR336.70 ($89.6).

The January school holiday, which fell primarily in February last year, pushed a 16.4 per cent rise in demand. Both occupancy and ADR levels continue to be pressured by supply growth, which rose to 9.3 per cent for the month.

As STR reported last week, Saudi Arabia’s hotel development pipeline represents 76 per cent of the existing room supply in the country. However, STR analysts stress the importance of considering the long-term investments being made in tourism and hospitality as part of Vision 2030.

In Africa, occupancy rates climbed up 5.7 per cent to 53.4 per cent with ADR also jumping 2.6 per cent to $126.55. RevPAR was also up 8.4 per cent to $67.54.

In Morocco, occupancy was up 16.3 per cent to 54.1 per cent, pushing ADR up 28.5 per cent to MAD129.16 ($13.9). RevPAR increased signinficantly by 49.5 per cent to MAD69.9 (7.5).

The year-over-year increase in RevPAR was the first for a January in Morocco since 2014. STR analysts attribute a spike in demand (up 16.1 per cent) to the FIA Formula E Championship race in Marrakech as well as Marrakech Marathon.

Occupancy rates in Nigeria moved up 8.6 per cent to 41.4 per cent but ADR slipped 11.2 per cent to NGN136.09 ($0.37). RevPAR was also down 3.6 per cent to NGN56.38 ($0.15).

STR analysts note that Nigeria’s hotel industry continues to be affected by a poor reputation around security concerns in the country. Regardless, the 8.6 per cebt year-over-year lift in occupancy was the country’s highest for any January since 2013. - TradeArabia News Service

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

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