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STR: Middle East and Africa 2018 hotel performance

January 25, 2019 Hotel Trends No Comments Email Email

Hotels in the Middle East reported negative 2018 performance results, while hotels in Africa posted total-year growth across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, 2018 vs. 2017

Middle East

  • Occupancy: -0.5% to 64.6%
  • Average daily rate (ADR): -5.2% to US$155.45
  • Revenue per available room (RevPAR): -5.7% to US$100.45


  • Occupancy: +4.7% to 60.6%
  • Average daily rate (ADR): +7.1% to US$118.31
  • Revenue per available room (RevPAR): +12.1% to US$71.74

Among subcontinents in the region, Northern Africa posted the largest 2018 increases in each of the three key performance metrics: occupancy (+11.8% to 61.1%), ADR (+13.8% to US$96.81) and RevPAR (+27.2% to US$59.18). Within Northern Africa, Egypt,Morocco and Tunisia each recorded double-digit RevPAR growth for the year.

Local currency, 2018 vs. 2017

Cairo & Giza, Egypt

  • Occupancy: +11.0% to 72.5%
  • ADR: +10.8% to EGP1,713.35
  • RevPAR: +23.1% to EGP1,242.20

According to STR analysts, the submarket’s 10.5% rise in demand (room nights sold) was mostly a result of tourism recovery, improved security protocols, resumed flights with Russia, and marketing campaigns. ADR growth was helped by the combination of increased guest demand and competitive pricing due to the devaluation of the Egyptian Pound. Overall, the absolute occupancy level was the highest for Cairo & Giza since 2008, while the ADR value was the highest STR has ever benchmarked for the submarket.

Doha, Qatar

  • Occupancy: +10.1% to 60.8%
  • ADR: -18.8% to QAR269.46
  • RevPAR: -10.6% to QAR163.86

STR analysts cite tourism recovery which was helped by a shift to alternative source markets and fast-tracked reforms stemming from Qatar’s National Tourism Sector Strategy 2030 as reasons behind a 14.3% jump in demand. The 60.8% absolute occupancy level was still low compared to recent years, but year-over-year growth was pronounced because 2017 was such a low demand year affected by the blockade imposed on the country. ADR, on the other hand, continued to decline in 2018 as hoteliers looked to maintain market share with an influx of new supply entering the country.

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