Preliminary December 2017 data for hotels in Jeddah, Saudi Arabia, indicates significant supply growth and negative performance. ¬†
Based on daily data released by STR, from December, Jeddah reported the following in year-over-year comparisons:
- Supply: +7.0%
- Demand: -2.0%
- Occupancy: -8.4% to 45.1%
- Average daily rate (ADR): -4.1% to SAR694.85
- Revenue per available room (RevPAR): -12.1% to SAR313.45.
STR analysts note that while room demand has fallen, a jump in new supply continues to worsen occupancy levels and pressure rates. The absolute occupancy level would be the lowest for any December on record in Jeddah, while the ADR value would be the lowest for a December since 2010.
STR will release full December and total-year 2017 results later this month.