Middle East hotels report nearly flat results during Q2 2017
Occupancy was mostly flat (-0.1% to 62.4%), while ADR increased 0.8% to $169.67 and RevPAR rose 0.6% to $105.84
According to data released by STR, the hotel industry in the Middle East reported nearly flat results during the second quarter of 2017, while hotels in Africa recorded growth across the three key performance metrics.
During the second quarter of 2017, the Middle East hotel industry reported occupancy was mostly flat (-0.1% to 62.4%), while ADR increased 0.8% to US $169.67 and RevPAR rose 0.6% to $105.84.
Across the African continent, occupancy rose by 2.7% to 53.3%, while ADR rose 10.5% to $101.20. RevPAR for Africa was $53.96, a 13.5% increase from the same period last year.
Egypt was one African country that showed a spike in all metrics, with occupancy at 46.8% (an increase of 13.9%), ADR at EGP 1,217.52 ($68, a 67.2% increase), and RevPAR increasing by 90.5% to EGP 569.54 ($32). The occupancy growth was due primarily to a comparison with a significantly low performance period during Q2 2016 (41.1%), which were affected by the May 2016 EgyptAir plane crash. Since the end of 2016, the country has shown signs of recovery with double-digit occupancy increases in six of seven months.
Oman also showed positive results, with double-digit growth in occupancy (+10.1% to 49.6%); however, the absolute value in the metric was the fourth-lowest for a Q2 in Oman since 2004, revealed STR. ADR in Oman for Q2 2017 showed a 2.6% increase to OMR 58.30 ($152), and RevPAR rose by 13% to OMR 28.89 ($75). Increased occupancy during the Ramadan period compounded by the shift of Eid al-Fitr into Q2 this year contributed to the positive result, according to STR analysts.