Riyadh, Kuwait to show RevPAR growth in Q2 2018
Colliers International's MENA hotels three-month forecast report for March to May 2018 also named Fujairah and Manama as hospitality destinations that are works in progress
Riyadh, Saudi Arabia and Kuwait were named as hospitality hotspots by Colliers International’s three-month MENA hotel forecast highlights report from March 2018 to May 2018.
Riyadh’s strong corporate and MICE activities which resulted from higher public spending. This led to growth on both occupancy levels and average daily rates (ADR) and expected to register a 20% year-on-year RevPAR variance. The report stated that same trends are expected till the end of summer.
As for Kuwait, MICE activities such as conferences and seminars is also driving the occupancy in the country and see an 8% YoY RevPAR growth. Additionally, lack of increase in supply of hotels in Kuwait has also contributed to the RevPAR growth, according to the report.
Aqaba in Jordan and Jeddah, Saudi Arabia have maintained a steady RevPAR in line with last year’s numbers. In Aqaba, local and international tourists during Easter holidays and beach seasons are keeping the numbers steady while in Jeddah, transient pilgrims during Umrah and school holidays and lower MICE demand is keeping the RevPAR same as 2017 in the same period.
The Emirate of Fujairah in the UAE and Manama, Bahrain, Colliers reported, are hospitality destinations that are still “works in progress” in the MENA region. Fujairah will see a 13% drop in YoY RevPAR driven by low demand in leisure and traditional source markets. While Manama is expected to see a 10% drop in YoY RevPAR compared to the same period last year. Limited MICE demand coupled with subdued leisure and weekend demand continues to impact occupancy rates, ADR and RevPAR growth, the report stated.