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ME hotel revenues down in November, Africa results mixed

LONDON, December 23, 2018

Hotels in the Middle East reported mixed performance results, in November, 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 0.9 per cent to 69.8 per cent but average daily rate (ADR) declined 7.7 per cent to $156.81, forcing revenue per available room (RevPAR) to drop 6.9 per cent to $109.42.

On the other hand, Africa experienced growth across all three performance metrics, recording a 5.8 per cent jump in occupancy to 68 per cent, and a 7.0 per cent rise in ADR to $119.59, pushing RevPAR up 13.2 per cent to $81.31.

Performance of featured markets for November 2018

Dar es Salaam in Tanzania reported decreases in each of the three metrics. Occupancy dipped 16.7 per cent to 53.2 per cent, and ADR dropped 1.8 per cent to TZS251,655.28 ($109.3). As a result, RevPAR declined 18.2 per cent to TZS133,940.60 ($58.1).

STR analysts note that supply has grown 6.0 per cent year over year for two consecutive months in Dar es Salaam. Prior to that jump, supply had remained nearly flat since early 2016. Despite the overall drop in occupancy, the market saw five nights with occupancy above 70 per cent, thanks in part to the 21st AutoExpo (November 13-15). According to the HVS Hotel Valuation Index, demand has been sluggish in the market due to a cut in government conferences and increased taxes. Additionally, direct flights to Zanzibar from neighbouring countries may also be a factor for a decline in overnight leisure demand in Dar Es Salaam.

Sharm el-Sheikh in Egypt recorded increases in occupancy (up 23 per cent to 62.8 per cent) and ADR (up 28.8 per cent to EGP1,165.39/$64.9), with RevPAR climbing up 58.4 per cent to EGP731.65 ($40.7) in November.

STR analysts point to a 23.0 per cent increase in demand (room nights sold) in November and a 22.6 per cent increase in demand through the first 11 months of the year as further evidence of tourism recovery in the market. At the same time, a lack of supply growth has helped in hoteliers’ pricing confidence. - TradeArabia News Service




Tags: Middle East | Africa | hotels |

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