The occupancy rates in hotels across the Middle East has fallen by 3.9% to 62.1% in a year-on-year comparison for August.
The average daily rate, however, has increased by 7.4% to $151.04. RevPar has also increased by 3.2% to $93.84.
The figures were revealed in the latest report by STR – the report also focused on the UAE.
“STR analysts note that hotel demand remains solid in the United Arab Emirates (+4.8% year to date), but significant supply growth (5.1% YTD) continues to pressure occupancy levels and pricing power,” reads the report.
“At the market level, both Dubai (-14.0%) and Abu Dhabi(-11.9%) reported RevPAR declines, due primarily to lower rates.”
Egypt also featured prominently in the report.
“Egypt’s ADR has remained above EGP1,000 each month since November 2016, and rate growth has been primarily driven by Cairo, which posted an 83.8% August increase to EGP1,671.39. However, figures are quite different in U.S. dollar terms, with a 12.9% decline for the country and 7.6% decrease in Cairo,” read the report.
“Meanwhile, Egypt’s occupancy levels benefitted from a 12.9% increase in demand, while supply grew only 0.4% compared with August 2016. Egypt’s hotels continue to recover from security concerns in the country, and demand has grown by double-digits for all but one month in 2017. ”
- Occupancy: -3.9% to 62.1%
- Average daily rate (ADR): +7.4% to US$151.04
- Revenue per available room (RevPAR): +3.2% to US$93.84
United Arab Emirates
- Occupancy: -5.9% to 68.4%
- ADR: -8.3% to AED422.77
- RevPAR: -13.7% to AED289.27
- Occupancy: +12.5% to 66.8%
- ADR: +73.3% to EGP1,233.18
- RevPAR: +95.0% to EGP823.70