Middle East hotel figures slump in 2015

Hotels in the Middle East reported negative year-end 2015 results, while hotels in Africa recorded mostly positive results in the three key performance metrics, according to data from STR Global. 

Compared with 2014, the Middle East witnessed a 2% decrease in occupancy to 67.4%.

Average daily rate for the year was down 2.6% to US $192.82, while revenue per available room (RevPAR) dropped 4.6% to US $129.98.

This was in contrast to the Northern Africa and Southern Africa subcontinents, which experienced a 0.2% increase in occupancy to 57.3%.

Average daily rate was up 7.1% to $111.34, and RevPAR increased 7.3% to $63.74.

Egypt recorded a 4.2% increase in occupancy to 53.7% as well as double-digit growth in ADR (+18.9% to EGP616.46) and RevPAR (+23.9% to EGP331.16).

Egypt’s RevPAR increased year over year by more than 40.0% in six of the first seven months in 2015.

Back in the Middle East, Saudi Arabia saw a 2.6% decrease in occupancy to 62.4%, but noted increases in ADR (+3.6% to SAR799.38) and RevPAR (+0.9% to SAR498.49).

According to STR Global analysts, the country’s conflict with Yemen and the oil price decline have affected hotel performance in recent months.

However, rate growth drove a slight RevPAR increase for the year.

The United Arab Emirates reported decreases in each of the three key performance metrics: occupancy (-0.6% to 74.8%), ADR (-6.2% to AED705.75) and RevPAR (-6.7% to AED528.19).

Supply growth (+6.2%) outpaced demand growth (+5.6) in 2015, causing the decline in occupancy, and nearly flat revenue led to the declines in ADR and RevPAR.

Compared with December 2014, the Middle East subcontinent reported a 3.4% decrease in occupancy to 66.8%.

ADR for the month dropped 4.1% to $204.27. RevPAR fell 7.3% to $136.52.