STR: Middle East/Africa hotel performance for May 2019
STR: Middle East/Africa hotel performance for May 2019
26 JUNE 2019 8:45 AM

The Middle/East hotel industry reported an 8.6% occupancy decline to 52% in May, and despite an 8.9% ADR increase to $164.87, RevPAR dipped 0.4% to $85.75. African hotel occupancy decreased 5.6% to 51.2%, ADR dipped 0.4% to $99.30 and RevPAR declined 5.9% to $50.82.

LONDON—Hotels in the Middle East reported mixed May 2019 performance results, while hotels in Africa posted declines across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, May 2019 vs. May 2018

Middle East
• Occupancy: -8.6% to 52.0%
• Average daily rate (ADR): +8.9% to US$164.87
• Revenue per available room (RevPAR): -0.4% to US$85.75

• Occupancy: -5.6% to 51.2%
• Average daily rate (ADR): -0.4% to US$99.30
• Revenue per available room (RevPAR): -5.9% to US$50.82

Local currency, May 2019 vs. May 2018

• Occupancy: +30.5% to 77.2%
• ADR: +67.6% to SAR1,446.79
• RevPAR: +118.7% to SAR1,116.61

The absolute values in each of the three key performance metrics were the highest for any May in STR’s Makkah database. STR analysts note that performance in the holy city was helped by Ramadan, as the number Umrah pilgrims continues to rise. Year-over-year comparisons were boosted even further by a favorable calendar shift—more Ramadan dates fell in May of this year than May 2018.

Abu Dhabi
• Occupancy: -14.9% to 52.2%
• ADR: -4.4% to AED335.39
• RevPAR: -18.6% to AED175.10

STR analysts attribute the performance declines to supply growth and the negative side of the Ramadan calendar shift. The market sees less business during the holy month, and while a majority of hotels ran special Ramadan offers to help stimulate demand, the number of rooms sold in the market fell 10.3% year over year. Supply, however, jumped 5.3%.

Download STR's May 2019 global hotel review.

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