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ME hotel occupancy, rates down in May, Africa results positive

LONDON, June 25, 2018

Hotels in the Middle East reported negative performance results for the month of May while hotels in Africa posted growth across the three key performance metrics, according to data from STR.

Occupancy levels in the Middle East fell 10.7 per cent to 57.0 per cent during the month, while average daily rate (ADR) inched up 1.7 per cent to $151.62, resulting in a 9.1 per cent dip in revenue per available room (RevPAR) to $86.45.

Hotels in Bahrain suffered a rough month as occupancy levels dropped 24.6 per cent to 40.1 per cent, with ADR and RevPAR also slipping 12.4 per cent to BD59.76 ($157.1) and 33.9% to BD23.99 ($63.09), respectively.

Bahrain reported only 14 days with RevPAR growth in May, most of which came at the end of the month. STR analysts note that the country’s year-over-year performance was affected by the Ramadan calendar shift as well as a surplus in new supply (up 9.1 per cent). The trend of new rooms entering the market is likely to continue as Bahrain currently has 2,184 rooms in construction, roughly 13 per cent of the country’s existing supply.

Egypt, however, posted significant growth during the month with occupancy rates going up 9.9 per cent to 53.1 per cent and ADR climbing 5.7 per cent to EGP1,259.36 ($70.3). RevPAR also rose 16.2 per cent to EGP668.40 ($37.3).

As a sign of increased tourism and continued hotel performance recovery in the country, STR analysts point out that the 16.2 per cent increase in RevPAR was actually the lowest year-over-year change in Egypt since October 2016. The absolute ADR level was the highest for any May on record.

In Africa, hotels witnessed occupancy levels drop 1.7 per cent to 54.5 per cent in May. However, ADR and RevPAR rose 4.6 per cent to $109.67 and 2.8 per cent to $59.73, respectively.

Hotels in South Africa posted a 6.3 per cent drop in occupancy levels to 57.1 per cent for the month of May, with ADR also falling 1.0 per cent to ZAR1,108.09 ($82.2). RevPAR was also affected, slipping 7.2 per cent to ZAR632.96 ($47). - TradeArabia News Service
 




Tags: Middle East | hotels | RevPAR | ADR |

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