Hotels in the Middle East reported mostly negative results, while hotels in Africa reported mixed results in the three key performance metrics when reported in U.S. dollar constant currency, according to May 2016 data from STR.9
Compared with May 2015, the Middle East subcontinent reported nearly flat occupancy (+0.1% to 69.1%). Average daily rate for the month was down 4.7% to US$156.75, and revenue per available room fell 4.6% to US$108.34.
Africa experienced a 5.8% decrease in occupancy to 56.1%. However, average daily rate was up 8.8% to US$100.16, and RevPAR increased 2.5% to US$56.15.
Performance of featured countries for May 2016 (local currency, year-over-year comparisons):
Egypt saw a 15.7% drop in occupancy to 52.8%, but a 24.8% rise in ADR to EGP721.66 drove a 5.3% increase in RevPAR to EGP381.00. According to STR analysts, a significant decrease in the country’s overall demand was due to political unrest and the EgyptAir plane crash on 19 May. However, hoteliers pushed rates and managed to increase RevPAR for the second consecutive month. Performance varied at the market level. Cairo reported an occupancy increase of 10.6%, while Sharm el Sheikh (-39.7%) and the Red Sea Resorts (-40.7%) saw significant declines in the metric.
Oman reported decreases across the three key performance metrics: occupancy (-5.0% to 49.4%), ADR (-8.7% to OMR56.54) and RevPAR (-13.3% to OMR27.95). The absolute RevPAR level was the worst for a May in Oman since 2011, caused in part by a 9.9% increase in supply.
Tunisia experienced decreases in occupancy (-11.7% to 42.5%) and RevPAR (-9.1% to TND68.43). ADR was up 2.9% to TND161.04. Like many North African countries, Tunisia has seen consistent and significant declines in demand following the terrorist attack in Sousse last year. Figures from the Tunisia Ministry of Tourism showed a 47.6% year-over-year decrease in the number of tourist receipts through April. Year to date, hotel demand in the country is down 12.8%.
Performance of featured markets for May 2016 (local currency, year-over-year comparisons):
Amman, Jordan, saw an 8.5% increase in occupancy to 66.0% as well as double-digit growth in ADR (+11.2% to JOD123.14) and RevPAR (+20.7% to JOD81.30). Amman’s supply remained flat through the first five months of 2016 while demand has risen steadily. May produced the highest absolute occupancy since August 2014 and the highest ADR since May 2014, helped by the Jordan Forex Expo & Awards 2016 (30-31 May) and SOFEX Jordan global security conference and exhibition (9-12 May).
Cape Town, South Africa, posted a 9.2% increase in occupancy to 60.0% as well as double-digit increases in ADR (+9.4% to ZAR1,260.55) and RevPAR (+19.4% to ZAR756.48). Demand has increased year over year for 10 consecutive months in the market as the weakened South African Rand made the country a cheaper destination for international tourists. In addition, supply has decreased slightly in each of the last four months.
Jeddah, Saudi Arabia, experienced a 5.9% rise in occupancy to 78.4% as well as double-digit increases in ADR (+18.3% to SAR1,079.42) and RevPAR (+25.3% to SAR846.60). May was the strongest occupancy and rate month in Jeddah since September 2015, reversing a trend of negative performance since September 2015.
Additional performance data
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