Middle East hotels report poor May performance

Posted under News.
by Crystal Chesters | Published 3 years ago

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The hotel industry in the Middle East reported negative results in the three key performance metrics during May 2017 compared to the same period in 2016, according to data from STR.

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The Middle East reported average occupancy of 64.4%, down 5.9% compared to May 2016, while revenue per available room (RevPAR) decreased by 8.2% to $96.88.

In the UAE, occupancy decreased by 7.1% to 72%, ADR went down by 6.1% to AED 514.33 and RevPAR declined by 12.8% to AED 370.43.

Many hotel markets in the Middle East saw negative results as a result of the Ramadan calendar shift from early June 2016 to late May 2017.

In addition, a 5.3% year-over-year increase in supply weighed on performance for the month.

STR analysts note that corporate demand appears to be stable, with occupancy for group bookings (bookings of 10 or more rooms at a time) up 10.4% for the month.

Meanwhile, an 8.9% decline in transient occupancy brought down overall performance.

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