Hotels in the Middle East reported occupancy dropped 10.7% in May to 57%, and despite a 1.7% ADR increase to $151.62, RevPAR declined 9.1% to $86.45. In Africa, hotel occupancy fell 1.7% to 54.5%, ADR rose 4.6% to $109.67 and RevPAR increased 2.8% to $59.73.
LONDON—Hotels in the Middle East reported negative May 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, May 2018 vs. May 2017
• Occupancy: -10.7% to 57.0%
• Average daily rate (ADR): +1.7% to US$151.62
• Revenue per available room (RevPAR): -9.1% to US$86.45
• Occupancy: -1.7% to 54.5%
• Average daily rate (ADR): +4.6% to US$109.67
• Revenue per available room (RevPAR): +2.8% to US$59.73
Local currency, May 2018 vs. May 2017
• Occupancy: -24.6% to 40.1%
• ADR: -12.4% to BHD59.76
• RevPAR: -33.9% to BHD23.99
Bahrain reported only 14 days with RevPAR growth in May, most of which came at the end of the month. STR analysts note that the country’s year-over-year performance was affected by the Ramadan calendar shift as well as a surplus in new supply (+9.1%). The trend of new rooms entering the market is likely to continue as Bahrain currently has 2,184 rooms in construction, roughly 13% of the country’s existing supply.
• Occupancy: +9.9% to 53.1%
• ADR: +5.7% to EGP1,259.36
• RevPAR: +16.2% to EGP668.40
As a sign of increased tourism and continued hotel performance recovery in the country, STR analysts point out that the 16.2% increase in RevPAR was actually the lowest year-over-year change in Egypt since October 2016. The absolute ADR level was the highest for any May on record.
• Occupancy: -6.3% to 57.1%
• ADR: -1.0% to ZAR1,108.09
• RevPAR: -7.2% to ZAR632.96
A 4.2% decrease in demand was the worst for any month in South Africa since January 2015. This decrease, paired with a 2.2% increase in supply, pressured performance levels for the month. STR analysts note that Cape Town reported double-digit declines in occupancy (-14.5% to 53.9%) and RevPAR (-20.2% to ZAR700.96), which was another sign that the city’s water crisis has affected hotel performance.
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