In May, the Middle East hotel industry reported occupancy 5.9% to 64.4%, ADR fell 2.5% to $150.47 and RevPAR dropped 8.2% to $96.88. Africa, on the other hand, despite posting a 0.9% occupancy dip to 55.2%, saw a 11.6% ADR increase to $99.20 drive a 10.5% RevPAR increase to $54.76.
LONDON—The hotel industry in the Middle East reported negative results during May 2017, while hotels in Africa recorded mixed results in the three key performance metrics, according to data from STR.
U.S. dollar constant currency, May 2017 vs. May 2016
- Occupancy: -5.9% to 64.4%
- Average daily rate (ADR): -2.5% to US$150.47
- Revenue per available room (RevPAR): -8.2% to US$96.88
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.
- Occupancy: -0.9% to 55.2%
- Average daily rate (ADR): +11.6% to US$99.20
- Revenue per available room (RevPAR): +10.5% to US$54.76
Local currency, May 2017 vs. May 2016
- Occupancy: -5.3% to 58.0%
- ADR: -10.1% to QAR440.15
- RevPAR: -14.8% to QAR255.08
The performance decline is primarily attributed to the Ramadan calendar shift and a comparison with non-holiday dates last year. The final six days of the month each resulted in RevPAR decreases of more than 40.0%. STR is continuing to monitor performance in the country following the 5 June announcement from several Arab nations to sever diplomatic relations with Qatar. However, it remains too early to identify any potential impact on hotel performance.
- Occupancy: +0.5% to 61.3%
- ADR: +3.4% to ZAR1,115.24
- RevPAR: +3.9% to ZAR683.20
The absolute RevPAR level was the highest for any May on record in South Africa. STR analysts note that weekday business was the main driver of growth (RevPAR: +6.4% year over year), while weekend RevPAR actually declined 4.0%.
United Arab Emirates
- Occupancy: -7.1% to 72.0%
- ADR: -6.1% to AED514.33
- RevPAR: -12.8% to AED370.43
In addition to the aforementioned Ramadan calendar shift, 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.
International Media Contacts:
Media & Communications Coordinator
+44 (0)207 922 1979
Director of Marketing, Research & Analysis
+44 (0)207 922 1965
The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editor-in-Chief Stephanie Ricca at firstname.lastname@example.org.