Kuwait hotels buoyed by October corporate travel
Occupancy up 4.5 percentage points year-on-year and RevPAR rises by 16.8%
Hotel occupancy levels improved at hotels in Kuwait in October, with the year-on-year rise attributed to the return of corporate demand.
According to the latest HotStats survey by TRI Hospitality Consulting, occupancy increased by 4.5 percentage points to 53.5% in October. With average room rates up 7% to US $281.87, room RevPAR grew 16.8% to US $150.84.
"The return of corporate demand after the slow summer months benefitted hotel revenues in the city as hoteliers successfully improved room yields on certain corporate segments,” said TRI Consulting managing director Peter Goddard.
“Hoteliers also managed to protect room revenues by specifically targeting leisure guests, as temperatures cool down in the gulf country.
“However, given the relative low occupancy levels the market is currently achieving, ARR may be more difficult to protect in the horizon, as more hotels prepare to enter the market, especially in the mid-market segment.”
Despite the healthy top line figures, there the survey did reveal that there was a slowdown in yields of conferences and stagnant growth achieved in F&B revenues.
This means total RevPAR grew by 8.6% to US $313.59, while total gross operating profit increased by 11.9% to US$145.14.
The figures are based on the HotStats database and reflect the portfolios and distribution of the hotel chains surveyed, primarily within the four and five-star sectors.