MENA hotel forecasts: May 2017 - July 2017

Three month rolling forecast highlights

Filippo Sona, Colliers International director, head of hotels (MENA region).
Filippo Sona, Colliers International director, head of hotels (MENA region).

Makkah and Madinah

Makkah and Madinah markets are expected to see greater room night demand in the days leading up to Ramadan.

Occupancy levels are expected to remain strong in June in the two Holy Cities. However this is weaker compared to last year due to drop in demand from key feeder markets like Turkey, Egypt and Far East Asia leading to severe price wars putting average daily rates (ADRs) under tremendous pressure.

The RevPAR for the two Holy Cities is forecasted to drop by 6% and 5% respectively versus last year for the period of May–July 2016 mainly due to drop in ADRs.

Northern Emirates

Forecasts for Northern Emirates markets like Ras Al Khaimah and Fujairah are looking positive versus last year as result of aggressive destination marketing, staycation demand over Eid and school holidays leading to increased leisure demand.

Also, some shift of international demand from Turkey and Red Sea resorts of Egypt is further driving the occupancy.

The RevPAR for both markets is forecasted above last year by 3% for the period of May–July, and 5% above last year for full year 2017.

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