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UAE hotels record highest occupancy rate in Mideast

Dubai - The country also witnesses supply growth of 6.2%: Survey

Hotels in the UAE recorded the highest occupancy rate in 2015 among the Middle Eastern countries despite challenges such as global economic slowdown, geo-political situation, oil price free-fall, and strong US dollar among others.
Hotels in the Middle East reported negative year-end 2015 results, while hotels in Africa recorded mostly positive year-end 2015 results in the three key performance metrics when reported in US dollar constant currency, according to data from STR Global.
Compared with 2014, the Middle East reported a two per cent decrease in occupancy to 67.4 per cent. Average daily rate (ADR) for the year was down 2.6 per cent to $192.82. Revenue per available room dropped 4.6 per cent to $129.98.
The Northern Africa and Southern Africa subcontinents experienced a 0.2 per cent increase in occupancy to 57.3 per cent. Average daily rate was up 7.1 per cent to $111.34, and RevPAR increased 7.3 per cent to $63.74.
The UAE reported decreases in each of the three key performance metrics like other Middle Eastern markets hotels but its was the highest at 74.8 per cent in the region. The country's hotels' ADR declined by 6.2 per cent to Dh705.75 and RevPAR fell by 6.7 per cent to Dh528.19. The country also witnessed supply growth of 6.2 per cent, outpaced demand growth of 5.6 per cent in 2015.
Saudi Arabia saw a 2.6 per cent decrease in occupancy to 62.4 per cent but increases in ADR by 3.6 per cent to Saudi Riyal 799.38 and RevPAR increased by 0.9 per cent to SAR498.49. According to STR Global analysts, the country's conflict with Yemen and the oil price decline have affected hotel performance in recent months.
Egypt recorded a 4.2 per cent increase in occupancy to 53.7 per cent well as double-digit growth in ADR (+18.9% to EGP616.46) and RevPAR (+23.9% to EGP331.16). Egypt's RevPAR increased year over year by more than 40 per cent in six of the first seven months in 2015. Following the October plane crash in the Sinai Peninsula, flights to Sharm El Sheikh from many destinations were placed on hold until March 2016, creating a knockdown affect in hotel performance. Other markets, including Cairo and Hurghada, helped performance in Egypt carry on, with ADR up countrywide by 11.5 per cent in December.
Manama, Bahrain, experienced decreases in occupancy by 7.6 per cent to 51.5 per cent and RevPAR (-2.0% to BHD40.99). ADR in the market increased six per cent to BHD79.58. Although Manama's overall performance for the year dropped, the market did have some notable achievements in 2015.
Cape Town, South Africa, saw a 2.3 per cent dip in occupancy to 66.1 per cent, but a 10.2 per cent rise in ADR to ZAR1,405.62 drove a 7.7 per cent increase in RevPAR to ZAR929.43. Although Cape Town and other parts of South Africa are challenged to fill the increased supply generated from the 2010 FIFA World Cup, hoteliers in Cape Town have seen success with higher rates.
- abdulbasit@khaleejtimes.com