STR: Middle East/Africa hotel performance for Q3 2017
 
STR: Middle East/Africa hotel performance for Q3 2017
23 OCTOBER 2017 8:23 AM

During Q3 2017, hotels in the Middle East reported occupancy fell 2.8% to 60.9%, and an 8.1% ADR decrease to $145.50 drove RevPAR down 10.7% to $88.61. Africa's hotel industry, on the other hand, reported occupancy rose 4.9% to 61.4% during the quarter, while ADR rose 10.1% to $97.79 and RevPAR increased 15.5% to $60.

LONDON—Hotels in the Middle East reported negative performance results during Q3 2017, while hotels in Africa posted growth across the three key performance indicators, according to data from STR.

U.S. dollar constant currency, Q3 2017 vs. Q3 2016

Middle East

  • Occupancy: -2.8% to 60.9%
  • Average daily rate (ADR): -8.1% to US$145.50
  • Revenue per available room (RevPAR): -10.7% to US$88.61

Africa

  • Occupancy: +4.9% to 61.4%
  • Average daily rate (ADR): +10.1% to US$97.79
  • Revenue per available room (RevPAR): +15.5% to US$60.00

Local currency, Q3 2017 vs. Q3 2016

Lebanon

  • Occupancy: +16.6% to 67.8%
  • Average daily rate (ADR): +10.5% to LBP251,024.45
  • Revenue per available room (RevPAR): +28.9% to LBP170,158.02

STR analysts note that the country’s strong year-over-year growth for the quarter was due to considerably low performance levels over the past several years, caused by political unrest and security concerns. This was the strongest Q3 for Lebanon hotels since 2011. Additionally, September marked Lebanon’s highest actual occupancy level on record for the month (70.1%).

Saudi Arabia

  • Occupancy: -1.7% to 55.3%
  • ADR: -8.4% to SAR808.49
  • RevPAR: -10.0% to SAR446.98

Saudi Arabia reported a considerable, 7.2% year-over-year increase in supply for the quarter, which countered a 5.4% uplift in demand (roomnights sold). STR analysts note that Group (bookings of 10 or more at one time) business was a significant driver of demand in August. Medina was the only tract in the country that recorded Q3 RevPAR growth (+2.4%), while Jeddah was the only market that recorded an increase in ADR (+5.0%). The country currently has more than 64,000 hotel rooms in the pipeline, and that should continue to affect performance levels in the short term as new properties come online.

South Africa

  • Occupancy: -0.2% to 63.3%
  • ADR: +1.3% to ZAR1,104.56
  • RevPAR: +1.1% to ZAR699.36

South Africa’s marginal occupancy decline was due to a 2.0% increase in supply edging out a 1.8% increase in demand. Regardless, the country posted its highest ADR and RevPAR levels for any Q3 on record. At the market level, top RevPAR increases were reported in the North West Province (+13.4%), Eastern Cape (+8.5%) and Free State (+6.9%). Among segments, Luxury hotels saw the strongest growth, with ADR up 6.0% and RevPAR increasing 5.3%.

Download STR's global hotel review for September 2017 here.

International Media Contacts:

Alex Anstett
Media & Communications Coordinator
aanstett@str.com
+44 (0)207 922 1979

Naureen Ahmed
Director of Marketing, Research & Analysis
media@str.com
+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 sricca@hotelnewsnow.com.

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.