Hotels in the Middle East reported occupancy fell 3.9% to 62.1% during the month, but a 7.4% ADR increase to $151.04 kept RevPAR growth positive (+3.2% to $93.84). Africa's hotel industry saw occupancy climb 2.9% to 61.2% while ADR rose 11.7% to $99.78 and RevPAR jumped 15% to $61.09.
LONDON—Hotels in the Middle East reported mixed performance results during August 2017, while hotels in Africa posted growth across the three key performance indicators, according to data from STR.
U.S. dollar constant currency, August 2017 vs. August 2016
- Occupancy: -3.9% to 62.1%
- Average daily rate (ADR): +7.4% to US$151.04
- Revenue per available room (RevPAR): +3.2% to US$93.84
- Occupancy: +2.9% to 61.2%
- Average daily rate (ADR): +11.7% to US$99.78
- Revenue per available room (RevPAR): +15.0% to US$61.09
Local currency, August 2017 vs. August 2016
- Occupancy: +12.5% to 66.8%
- Average daily rate (ADR): +73.3% to EGP1,233.18
- Revenue per available room (RevPAR): +95.0% to EGP823.70
Egypt’s ADR has remained above EGP1,000 each month since November 2016, and rate growth has been primarily driven by Cairo, which posted an 83.8% August increase to EGP1,671.39. However, figures are quite different in U.S. dollar terms, with a 12.9% decline for the country and 7.6% decrease in Cairo. Meanwhile, Egypt’s occupancy levels benefitted from a 12.9% increase in demand, while supply grew only 0.4% compared with August 2016. Egypt’s hotels continue to recover from security concerns in the country, and demand has grown by double-digits for all but one month in 2017.
- Occupancy: -6.4% to 65.8%
- ADR: +9.6% to MAD1,183.50
- RevPAR: +2.5% to MAD778.21
August marked Morocco’s fifth consecutive month of ADR growth. At the market level, Marrakech recorded a 17.5% increase in RevPAR, driven solely by rate growth, while Casablanca was the only market that managed to increase both occupancy and ADR, resulting in 5.6% growth in RevPAR. STR analysts note that supply growth (+3.5% year to date) is affecting Morocco’s occupancy levels. Additionally, the country has 28 hotel projects in the pipeline, of which, six are scheduled to open before the end of the year.
United Arab Emirates
- Occupancy: -5.9% to 68.4%
- ADR: -8.3% to AED422.77
- RevPAR: -13.7% to AED289.27
STR analysts note that hotel demand remains solid in the United Arab Emirates (+4.8% year to date), but significant supply growth (5.1% YTD) continues to pressure occupancy levels and pricing power. At the market level, both Dubai (-14.0%) and Abu Dhabi (-11.9%) reported RevPAR declines, due primarily to lower rates.
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