Mideast hotel occupancy rate rises to 65.2pc in August
Hotels in the Middle East reported mixed results in key performance metrics this August, posting a 2.3 per cent increase in occupancy to 65.2 per cent compared to August 2015, said a report.
However, average daily rate (ADR) was down 5.4 per cent to $141.89, and revenue per available room (RevPAR) fell 3.3 per cent to $92.54, according to the report by STR.
The report also revealed results for Africa, which posted mostly flat results in the three key performance metrics in August.
Africa experienced a 0.8 per cent increase in occupancy to 62.9 per cent, flat ADR at $126.60 and a 0.9 per cent lift in RevPAR to $79.60.
Performance of featured countries for August 2016:
Oman saw a 3.0 per cent rise in occupancy to 49.2 per cent, but a 10.0 per cent drop in ADR to OMR57.65 ($149.2) dragged RevPAR down 7.3 per cent to OMR28.34 ($73.3). STR analysts point to low oil prices as well as a third straight month of double-digit supply growth as a reason behind the overall decline. Oman has reported a year-over-year decrease in ADR for 20 consecutive months.
The UAE reported an increase in occupancy (over 2.1 per cent to 73.4 per cent) but declines in ADR (down 8.8 per cent to Dh463.51/$126) and RevPAR (down 6.8 per cent to Dh339.98/$92.5). Demand (over 5.1 per cent year to date) has remained well ahead of last year’s pace, but supply (over 5.2 per cent YTD) continues to pressure rate in the region. ADR in the UAE has decreased 20 consecutive months in year-over-year comparisons.
Kenya recorded a 9.3 per cent increase in occupancy to 60.3 per cent as well as double-digit growth in ADR (over 11.5 per cent to KES15,969.23/$155) and RevPAR (over 21.8 per cent to KES9,631.80/$93.5). The absolute ADR level was the highest on record for Kenya, and the absolute RevPAR level was the highest for the country since September 2012.
Performance of featured markets for August 2016:
Doha, Qatar, reported double-digit decreases in each of the metrics. Occupancy fell 11.2 per cent to 54.4 per cent; ADR was down 10.6 per cent to QAR353.71 ($97); and RevPAR dropped 20.6 per cent to QAR192.58 ($52.8). Significant supply growth (over 12.1 per cent YTD) coupled with a drop in demand (down 7.5 per cent YTD) and the oil crisis have led to 11 consecutive months of double-digit RevPAR decreases in Doha.
Muscat, Oman, reported decreases in each of the three metrics: occupancy (down 6.3 per cent to 46.4 per cent), ADR (down 9.6 per cent to OMR53.78/$139.2) and RevPAR (down 15.3 per cent to OMR24.94/$64.5). Numbers in Muscat mirror that of the entire country with four consecutive months of supply growth at 12.4 per cent greatly pressuring performance in the market.
Cape Town, South Africa, posted increases across the key performance metrics: occupancy (over 5.3 per cent to 63.1 per cent), ADR (over 15.8 per cent to ZAR1,319.05/$96.2) and RevPAR (over 22.0 per cent to ZAR831.93/$60.6). Occupancy in the market has grown 12 straight months in year-over-year comparisons, and ADR has grown 59 consecutive months. In addition to the devaluation of the South African Rand, hotels in the market have benefitted from a lack of supply growth (down 0.8 per cent YTD). - TradeArabia News Service