Included in this roundup of news from the MEA region: Brands looking to Africa; October performance data; the latest on oil impacts; and more.
Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on Middle East/Africa.
MEA performance data for October
The Middle East saw performance drop in October as rate increases drove revenue improvement in Africa for the same month, according to data from Hotel News Now’s parent company STR.
The Middle East saw occupancy drop 4.4% to 64% and average daily rate fall 9% to $174.19, combining for a 13% decline in revenue per available room to $11.48. Meanwhile, strong ADR growth (up 8.2% to $105.71) offset a 5.1% drop in occupancy to 58.5% for African hoteliers, leading to a net 2.8% increase in RevPAR to $61.82.
Brands target Africa
Hotel developers and brands are increasing their activity in Africa, particularly due to a rising middle class, commodity-driven economies and a continued appetite for tourism, writes Hotel News Now contributor Ed Watkins.
“There are opportunities right across the continent,” said Patrick Fitzgibbon, SVP of development for Europe, Middle East and Africa at Hilton Worldwide Holdings. “If you look at the fundamentals of Africa in terms of domestic, regional, inter-regional and international travel, there is a growth forecast on every front.”
A look at oil impacts
STR recently analyzed the impact of oil prices on oil-driven markets around the globe, including Abu Dhabi and Dubai in the United Arab Emirates and Lagos, Nigeria, and found a correlation between hotel occupancies and oil prices.
Oil prices have been on a bit of a roller coaster ride in light of plans for The Organization of the Petroleum Exporting Countries members and Russia to curtail development, but several countries are ramping up production before that agreement kicks in, reports The Wall Street Journal.
Deals and development
- The 162-room Hampton by Hilton Istanbul Zeytinburnu opened as Hilton Worldwide Holdings second Hampton-branded hotel in Turkey’s capital.
- InterContinental Hotels Group announced plans for its largest Holidy Inn property, which will open in Dubai. The 520-room Holiday Inn Dubai Festival City will open in 2017, will be managed by IHG and owned by Al-Futtaim.
- Carlson Rezidor and developer East-West SA announced plans for the 240-room Radisson Blu Beach Resort, Sal, to open in 2019 on the Cape Verde island of Sal.
- The Resort Group announced plans for a 200-room Jaz hotel and a 350-room Steigenberger hotel on the island of Boa Vista to be managed by Deutsche Hospitality and open by 2020.
- The 130-room Four Points by Sheraton King Abdul Aziz Road will open in Riyadh, Saudi Arabia in 2019.
Compiled by Sean McCracken.