Mixed results for the Middle East/Africa hotel industry in May

Published on : Wednesday, June 24, 2015

str globalThe Middle East/Africa region reported mixed year-over-year results in the three major performance metrics during May 2015 when reported in U.S. dollars, according to data compiled by STR Global.


The region reported a 3.0-percent increase in occupancy to 65.1 percent, a 5.7-percent drop in average daily rate to US$142.54 and a 2.9-percent decrease in revenue per available room to US$92.81.


When looking at the three Middle East/Africa subregions, Northern Africa posted the largest increase in occupancy (+15.6 percent to 61.6 percent) and the only increase in RevPAR (+8.7 percent to US$53.96). None of the subregions showed an increase in ADR.


Southern Africa reported the largest declines in ADR (-9.8 percent to US$110.14) and RevPAR (-7.5 percent to US$65.10).


Amongst the countries in the region, Egypt experienced the highest increases in all three key performance measurements. Occupancy in the country was up 29.7 percent to 62.6 percent; ADR rose 14.4 percent to US$75.78; and RevPAR increased 48.3 percent to US$47.43. Egypt has continued to experience positive results since final travel advisories were lifted in August 2014 and tourist destinations were once again open for business. According to STR Global analysts, Cairo, Egypt, is a popular destination for Arabian travellers. Sharm el-Sheikh, Egypt, is a popular and reasonably-priced destination for Europeans.


Zimbabwe was the only other country to report a double-digit increase in RevPAR, up 12.5 percent to US$47.52. Occupancy in Zimbabwe increased 5.0 percent to 48.1 percent, and its ADR rose 7.2 percent to US$98.89.


Jordan experienced the largest decrease in occupancy, down 11.5 percent to 58.2 percent. Affected by an influx of refugees from neighbouring Syria, Jordan’s situation was felt most significantly by the hotel industry in its capital city (Amman).


Morocco reported the steepest declines in ADR (-18.4 percent to US$102.18) and RevPAR (-22.3 percent to US$64.68). Moroccan international demand has been affected by the French economy, which has not fared favourably recently.


Highlights amongst the Middle East/Africa region’s key markets for May 2015 include (year-over-year comparisons, all currency in U.S. dollars):


Source: STR Global.

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