Home » Hotel Trends » Currently Reading:

STR: 2016 Middle East and Africa hotel performance

January 28, 2017 Hotel Trends No Comments Email Email

Hotels in the Middle East reported negative total-year 2016 results, while hotels in Africa showed mixed performance when reported in U.S. dollar constant currency, according to data from STR.http://www.deevanahotels.com/

U.S. dollar constancy currency, year-over-year comparisons:

Middle East

  • Occupancy: -2.2% to 66.2%
  • Average daily rate (ADR): -7.2% to US$174.60
  • Revenue per available room (RevPAR): -9.2% to US$115.59

Africa

  • Occupancy: -3.6% to 55.4%
  • ADR: +10.7% to US$108.14
  • RevPAR: +6.7% to US$59.87

Local currency, year-over-year comparisons:

Egypt

  • Occupancy: -14.5% to 45.8%
  • ADR: +31.2% to EGP793.97
  • RevPAR: +12.3% to EGP363.46

Egypt’s occupancy continued to fall amid ongoing security concerns, dropping 36.2% below pre-Arab Spring levels. The devaluation of the Egyptian pound resulted in a sharp increase in ADR when reported in local currency, but when reported in U.S. dollars, year-end ADR growth was 2.5%. Egypt has recorded very little supply growth since 2012, while demand has been volatile (-13.9% for 2016).

Saudi Arabia

  • Occupancy: -4.8% to 59.5%
  • ADR: -3.9% to SAR764.08
  • RevPAR: -8.5% to SAR454.84

The oil crisis has heavily affected Saudi Arabia’s economy and hotel industry. As STR reported in August 2016, there is a correlation between the drop in oil prices and the downturn in hotel performance and profitability for Gulf Cooperation Council countries. At the market level, Riyadh was heavily affected in 2016 with occupancy down 10.2% and ADR down 8.1%. According to STR analysts, oil is not the only factor affecting the country’s hotels, however, as sharp supply growth has pressured occupancy levels and overall performance. In December, Saudi Arabia’s Luxury segment experienced an 18.6% increase in supply compared with the same month the previous year, contributing to a 23.3% year-over-year RevPAR decline for the country’s Luxury hotels during the month.

United Arab Emirates

  • Occupancy: +0.3% to 75.0%
  • ADR: -9.2% to AED631.51
  • RevPAR: -9.0% to AED473.70

While supply (+4.8%) in the United Arab Emirates grew at a rapid pace, demand (+5.0%) grew at a stronger rate for the first time since 2013. At the market level, Abu Dhabi closed the year with declines in both occupancy (-3.6% to 71.7%) and ADR (-9.9% to AED467.49). Dubai reported a slight increase in occupancy (+0.5% to 77.3%) but a significant drop in ADR (-9.9% to AED711.41).

Comment on this Article:







Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership

ADVERTISEMENTS

Elite Partnership Sponsors

ADVERTISEMENTS

Premier Partnership Sponsors

ADVERTISEMENTS

Official Media Event Partner

ADVERTISEMENTS

Global Travel media endorses the following travel publication

ADVERTISEMENTS