Wednesday, August 23, 2017

Middle East hotel revenues drop 18.4pc in July

Hotels in the Middle East reported negative results during July 2017, while hotels in Africa recorded growth across the three key performance metrics, according to data from STR.

Occupancy rates across the Middle East dropped 2.8 per cent to 56 per cent, while average daily rate (ADR) slipped 16.1 per cent to $134. The steepest fall was recorded in revenue per available room (RevPAR), which declined 18.4 per cent to $75.20.

Saudi Arabia posted a weak performance for July with RevPAR falling 35.2 per cent to SR300.14 ($79.9). ADR was down 31.6 per cent to SR625.78 ($166.7) and occupancy levels were recorded  at 48 per cent, a decrease of 5.2 per cent compared to July 2016.

Saudi Arabia’s performance declines followed a weak first half of 2017, and July year-to-date RevPAR is down 15.1 per cent. STR analysts note that although the country’s hotel performance is typically lower during the summer months, the double-digit declines for July 2017 reflect the impacts of low oil prices and high hotel supply growth.

Bahrain's hotel industry posted a similar performance for the month of July, with RevPAR falling 12.4 per cent to BD32.03 ($84.3) and ADR slipping 11.5 per cent to BD64.91 ($171). Occupancy levels remained somewhat the same with a minor 1 per cent drop, standing at 49.3 per cent for the month.

Following performance increases in June boosted by post-Ramadan celebrations, Bahrain hotels saw sharp declines in July. Those decreases fell more in line with recent trends in the country, as RevPAR through July was down 6.9 per cent compared with the first seven months of 2016.  

Hotels in Africa, however, showed signs of growth as occupancy rates were up 6.9 per cent to 60.7 per cent and ADR climbed 9.3 per cent to $97.81. RevPAR figures also increased, jumping 16.8 per cent to $59.34.
July was Nigeria’s strongest month thus far in 2017 thanks to a 16.7 per cent increase in demand. This translated to a 12 per cent jump in occupancy levels and 5.8 per cent climb in ADR to NGN48,490.15 ($134). RevPAR also rose 18.5 per cent to NGN23,230.78 ($64.2).

According to STR analysts, strong events business in Lagos boosted occupancy and rate growth. Group (bookings of 10 or more rooms) RevPAR in the country rose 58.3 per cent during the month. - TradeArabia News Service

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