MEA reports decrease in occupancy levels

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by Dina Maaty | Published 5 years ago

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According to the latest data compiled by STR Global, hotels in the Middle East and Africa shutterstock_265654901reported negative results in the three key performance metrics when reported in U.S. dollars.
Compared to October 2014, the Middle East subcontinent reported a 4.6% decrease in occupancy to 67.4%, a 12.3% drop in average daily rate to $200.66 and a 16.3% decline in revenue per available room to $135.24.
The Northern Africa and Southern Africa subcontinents experienced a 0.3% decline in occupancy to 62.3%, a 4.9% drop in ADR to $111.85 and a 4.6% decrease in RevPAR to $69.70.

Y-o-Y Performance of featured countries for October 2015
Egypt reported decreases across the three key performance metrics: occupancy (-2.9% to 59.2%), ADR (-2.9% to EGP625.72) and RevPAR (-5.7% to EGP370.48). Absolute occupancy for the month remained comparable to October 2014 as well as September 2015. As the hotel industry in Egypt continues its recovery, year-to-date RevPAR is up 31.2%. However, the 31 October Russian plane crash in the Sinai Peninsula is expected to weaken performance results for November.

Qatar saw a 6.2% decrease in occupancy to 74.1% and a 6.2% decline in RevPAR to QAR515.91. ADR in the country remained flat at QAR695.85. Supply increased by 5.5% for the month—the highest supply growth for any month in Qatar since March 2013. With supply growth above 3.0% for each month since August, occupancy has decreased by at least 5.0% in three straight months.

The United Arab Emirates experienced a 0.7% decrease in occupancy to 78.5% as well as double-digit decreases in ADR (-10.3% to AED753.30) and RevPAR (-10.9% to AED591.31). Supply growth (+5.1%) outpaced demand (+4.4%) for the month, resulting in the slight dip in occupancy. STR Global analysts attribute the drop in ADR to a weak Euro. With a decrease in international arrivals from Europe, hotels have lowered rate in an effort to sustain demand.

 

Performance of featured markets for October 2015

Beirut, Lebanon, recorded a 9.2% decrease in occupancy to 51.5%, a 6.9% drop in ADR to LBP221,116.01 and a 15.5% decline in RevPAR to LBP113,882.46. STR Global analysts cite security concerns and a high volume of Syrian refugees as reasons for the performance decreases in October.
Dubai, United Arab Emirates, saw occupancy dip 2.5% to 80.0%. The market also reported double-digit decreases in ADR (-11.0% to AED871.96) and RevPAR (-13.2% to AED697.20). The shift of Eid al-Adha from October 2014 to September 2015 negatively affected performance, especially at the beginning of the month. ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand.









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