Hotels in the Middle East reported mixed results in the third quarter of the year while hotels in Africa showed positive results during Q3, according to a new report.

Compared with Q3 2015, the Middle East reported a 1.6 per cent increase in occupancy to 63.3 per cent. However, average daily rate (ADR) for the quarter was down 9.2 per cent to $160.40, and revenue per available room (RevPAR) dropped 7.7 per cent to $101.51, showed data released by STR, a leading provider of global hotel data.

Africa experienced nearly flat occupancy (up 0.2 per cent to 58.6 per cent). ADR was up 9.0 per cent to $101.66, and RevPAR grew 9.2 per cent to $59.59.

Performance of featured countries for Q3 2016

Bahrain saw a 5.1 per cent increase in occupancy to 54.0 per cent. However, ADR dropped 7.4 per cent to BHD76.30 ($200.8), and RevPAR fell 2.7 per cent to BHD41.22 ($108.5). The absolute occupancy level was the best for a Q3 in the country since 2010, but the ADR decline was the steepest for Q3 since 2004. According to the Bahrain Tourism and Exhibition Authority, the country has experienced a 10 per cent increase in tourist arrivals over the past two years and is targeting greater increases by 2018. Through nine months in 2016, hotel demand increased 5.3 per cent in Bahrain.

Egypt experienced a 4.8 per cent decrease in occupancy to 56.5 per cent, but a 22.4 per cent lift in ADR to EGP762.85 ($85.8) pushed RevPAR up 16.6 per cent to EGP430.72 ($48.4). The absolute occupancy level was an improvement from the first two quarters of the year, and the ADR level was the highest for any quarter on record in the country due to high inflation.

Performance of featured markets for Q3 2016

Abu Dhabi, UAE, reported decreases across the three key performance metrics. Occupancy fell 3.3 per cent to 65.8 per cent; ADR was down 6.7 per cent to Dh372.46 ($101.3); and RevPAR dropped 9.7 per cent to Dh245.08 ($66.7). STR analysts point to a 3.6 per cent year-to-date increase in supply and the economic impact from the oil crisis as reasons behind the performance declines. The absolute ADR level was the lowest for any quarter on record in the market.

Lagos, Nigeria, saw a 7.9 per cent rise in occupancy to 44.4 per cent as well as double-digit growth in ADR (up 12.6 per cent to NGN47,000.48) and RevPAR (up 21.5 per cent to NGN20,865.08). STR analysts cite a low comparison base and a lift in leisure business as a reason behind the occupancy increase. Through the first nine months of 2016, Lagos has seen a 2.9 per cent occupancy increase on weekends, while weekday occupancy has grown 0.7 per cent. At the same time, ADR is up with inflation in the country.   

Nairobi, Kenya, posted increases across the three key performance metrics: occupancy (up 2.3 per cent to 59.3 per cent), ADR (up 2.9 per cent to KES14,958.28) and RevPAR (up 5.3 per cent to KES8,875.69). Both supply (up 14.1 per cent) and demand (up 16.7 per cent) grew by double figures for the quarter, and Q3 2016 was the only quarter this year where Nairobi saw year-over-year increases in both occupancy and ADR.

Middle East and Africa performance for September 2016

The Middle East saw negative results when compared with September 2015, whereas results for Africa were mixed.

The Middle East reported a 1.7 per cent decrease in occupancy to 66.8 per cent. ADR for the month was down 5.9 per cent to $177.83. RevPAR dropped 7.5 per cent to $118.75.

Africa experienced a 2.0 per cent decrease in occupancy to 59.2 per cent, but ADR was up 7.6 per cent to $99.83, and RevPAR grew 5.4 per cent to $59.06. - TradeArabia News Service