Middle East hotels see RevPAR dip in May 2017

Factors driving down RevPAR across the region include the Ramadan calendar shift this year, as well as the increase in hotel supply

Dubai, UAE.
Dubai, UAE.

The hotel industry in the Middle East reported overall negative results during May 2017, while hotels in Africa recorded mixed results in the three key performance metrics, according to data from STR.

In the Middle East, overall occupancy declined by 5.9% to an average of 64.4% and ADR saw a 2.5% drop to US$ 150.47. These results propelled RevPAR downward by 8.2% to $96.88 in the region. Many hotel markets in the Middle East reported negative results as a result of the Ramadan calendar shift from early June 2016 to late May 2017.

Africa suffered only a slight dip in occupancy, 0.9% to 55.2% whereas ADR in the region saw gains of 11.6% to $99.20. RevPAR in the region likewise saw positive growth by 10.5% tpo $54.76.

In the UAE, all metrics suffered a decline in May, starting off with occupancy dropping 7.1% to 72% and ADR dropping 6.1% to AED 514.33 ($140.04). RevPAR in the Emirates went down by 12.8% to AED 370.43 ($100.86).

In addition to the aforementioned Ramadan calendar shift, a 5.3% year-over-year increase in supply in the UAE weighed on performance for the month.

STR analysts note that corporate demand appears to be stable, with occupancy for group bookings (defined as bookings of 10 or more rooms at a time) up 10.4% for the month. Meanwhile, an 8.9% decline in transient occupancy brought down overall performance.

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