ME hotel occupancy, rates down in Q2
LONDON, July 23, 2018
Hotels in the Middle East reported a downward streak in performance in the second quarter of the year as occupancy levels and rates steadily declined from April to June, according to data from STR.
Occupancy levels in the Middle East dipped 3.5 per cent to 60.2 per cent while average daily rate (ADR) dropped 5.8 per cent to $159.13, resulting in a 9.1 per cent decline in revenue per available room (RevPAR) to $95.73.
In Kuwait, occupancy rates were recorded at 52.7 per cent, down 0.9 per cent compared to the same period in 2017. ADR also slipped 1.6 per cent to KWD63.29 ($208.7) and RevPAR declined 2.5 per cent to KWD33.36 ($110).
Kuwait received a lift in demand during Eid al-Fitr like most countries in the region, according to STR analysts. However, the country’s absolute RevPAR levels have remained low since the drop in oil prices and subsequent lower occupancy levels.
Performance indicators in Morocco showed mixed results, with occupancy levels dropping 1.4 per cent to 56.8 per cent and ADR going up 24.1 per cent to MAD1,305.26 ($137.8). RevPAR also improved significantly, climbing 22.4 per cent to MAD741.37 ($78.2).
STR analysts attribute Morocco’s strong growth in ADR and RevPAR to multiple events that stimulated the tourism economy in the country as well as the usual boost in demand (room nights sold) that occurs after Ramadan. The 22.4 per cent jump in RevPAR was especially notable given that RevPAR increased 15.7 per cent during Q2 2017.
In Africa, occupancy rates climbed up 5.1 per cent to 56.3 per cent with ADR also jumping 6.6 per cent to $113.71. RevPAR was also up 12.0 per cent to $63.97.
In Nigeria, occupancy went up 10.9 per cent to 49.4 per cent and ADR moved up 9.9 per cent to NGN52,094.78 ($143.9). RevPAR also moved up by 21.9 per cent to NGN25,727.02 ($71).
STR analysts point to the correlation in oil prices and Nigeria’s tourism industry as a reason behind the country’s hotel performance growth. The 49.4 per cent absolute occupancy level was the highest for a Q2 in the country since 2014. - TradeArabia News Service
