Middle East/Africa hotels show poor April numbers

Muscat showed largest ADR drop, down 14.4% to US $232.64

Muscat experienced the largest drop in ADR, down 14.4% to $232.64.
Muscat experienced the largest drop in ADR, down 14.4% to $232.64.

The Middle East/Africa region reported negative year-over-year results in the three major performance metrics during April 2015 when reported in US dollars, according to data compiled by STR Global.

The region reported a 0.4% decrease in occupancy to 66.2%, a 4.6% drop in average daily rate to US$168.47 and a 5% fall in revenue per available room to $111.45.

The UAE witnessed an occupancy decrease of 3% to 78.9%, as well as a decline in ADR by 7.9% to AED 798.01 ($217.25) and a 10.6% fall in RevPAR to AED 629.77 ($171.45).

In Saudi Arabia, occupancy fell 4.4% to 71.3%, ADR increased by 0.9% to SAR655.54 ($174.78), while RevPAR saw a 3.6% decline to SAR467.44 ($124.63).

Muscat, Oman, saw the largest drop in ADR, down 14.4% to $232.64.

Doha posted the only double-digit increase in ADR, up 12.3% to $201.08. Doha saw an influx of visitor arrivals for the first quarter of 2015 related to Gulf Cooperation Council events in the market.

Northern Africa experienced an 11.4% increase in occupancy to 57.6% and a 10.2% increase in RevPAR to $51.34. However, ADR in Northern Africa was down 1.1% to $89.11 for the month.

Cairo, Egypt, reported the largest increase in occupancy, up 30.6% to 53.2%. The city also recorded the largest rise in RevPAR, up 36.1% to $55.21.

Amongst the key countries in the region, Egypt experienced the highest increases in all three key performance measurements.

Occupancy in the country was up 16% to 59.8%, ADR rose 14.5% to US$80.46; and RevPAR increased 32.8% to $48.14.

The performance increases in Egypt can be attributed to low year-over-year comparables and the country’s continued economic recovery from the Arab Spring.

Morocco reported the steepest declines in both ADR (-27.4% to $116.11) and RevPAR (-27.6% to $71.42).

A decrease in French visitors, due to economic unrest in France, led to the declines in hotel performance in Morocco.

Lagos, affected by political uncertainty and slow economic growth, experienced the largest decrease in RevPAR, down 35.2% to US$90.95.

It also witnessed the largest occupancy decreases (-28.4% to 40.1%) along with Amman, Jordan (-22.4% to 57.7%).

Last month, STR Global reported a 7.6% year over year increase in rooms under contract compared with March 2014, and a 22.6% increase in rooms under construction.

STR Global provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America.


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