Middle East hotel results not so good for November

Published on : Monday, December 28, 2015

str globalHotels in the Middle East reported negative results, while hotels in Africa recorded mixed results in the three key performance metrics when reported in U.S. dollar constant currency, according to November 2015 data compiled by STR Global.

 

 

Compared to November 2014, the Middle East subcontinent reported a 3.3% decrease in occupancy to 69.2%. Average daily rate for the month was down 3.3% to US$204.97. Revenue per available room dropped 6.5% to US$141.90.

 

 

The Northern Africa and Southern Africa subcontinents experienced a 5.0% decline in occupancy to 58.8%. However, ADR was up 9.7% to US$115.33, and RevPAR increased 4.2% to US$67.83.

 

 

Performance of featured countries for November 2015 (local currency, year-over-year comparisons):

Egypt reported decreases in occupancy (-18.7% to 45.2%) and RevPAR (-8.2% to EGP283.26). ADR was up 13.0% to EGP626.30. The 31 October plane crash in Egypt’s Sinai Peninsula, and reported terror involvement in the tragedy, resulted in the country’s steep decline in occupancy.

 

 

Kenya saw occupancy fall 7.4% to 50.8%. However, ADR was up 12.9% to KES14,418.06, and RevPAR rose 4.5% to KES7,320.93. Kenya hosted Pope Francis during his late November trip to Africa, and rate drove RevPAR performance for the month.

 

 

Oman posted a 4.8% rise in occupancy to 69.8%. However, ADR fell 13.2% to OMR74.62, and RevPAR dropped 9.0% to OMR52.05. STR Global analysts attribute the decrease in ADR to macroeconomic factors such as a drop in oil revenue and a subsequent cut in spending. As reported by Oxford Economics, the S&P downgraded the country’s credit ratings.

 

 

Saudi Arabia experienced a 1.4% dip in occupancy to 52.9% but increases in ADR (+2.1% to SAR765.57) and RevPAR (+0.7% to SAR405.02). While RevPAR in the country remained nearly flat, STR Global analysts note significant year-over-year increases in the Medina (+34.0%) and Makkah (+14.1%) markets.

 

 

Performance of featured markets for November 2015 (local currency, year-over-year comparisons):

Abu Dhabi, United Arab Emirates, reported declines across the three key performance metrics: occupancy (-0.8% to 84.0%), ADR (-6.5% to AED737.70) and RevPAR (-7.3% to AED619.38). The performance decreases came even with occupancy levels above 90% during the weekend of the Formula 1 Abu Dhabi Grand Prix (27-29 November).

 

 

Johannesburg, South Africa, recorded a 3.9% increase in occupancy to 69.0% as well as double-digit growth in ADR (+14.4% to ZAR900.04) and RevPAR (+18.8% to ZAR621.45). The 69.0% absolute occupancy level was the highest for a November in Johannesburg since 2008. ADR was affected by inflation in South Africa, which has come with credit rating concerns and a move back into the trade deficit of the third quarter, according to Oxford Economics.

 
Source: STR Global.

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