Middle East hotels post negative performance for May 2018
Hotels in Africa on the other hand showed growth in terms of ADR and RevPAR
Hotels in the Middle East reported negative May 2018 performance results compared to May 2017, while hotels in Africa posted growth across the three key performance metrics for the same period, according to data from STR.
In the Middle East, hotel occupancy has dipped by 10.7% to 57%, while the average daily rate or ADR rose by 1.7% to US $151.62 but revenue per available room (RevPAR) dropped 9.1% to $86.45.
Hotels in Africa on the other hand, experienced a slight dip (-1.7%) in occupancy to register 54.5% while the ADR went up by 4.6% to $109.67 and RevPAR dipped by 9.1% to $59.73.
In the Middle East, Bahrain reported only 14 days with RevPAR growth in May, most of which came at the end of the month. STR analysts note that the country’s year-over-year performance was affected by the Ramadan calendar shift as well as a surplus in new supply (+9.1%). The trend of new rooms entering the market is likely to continue as Bahrain currently has 2,184 rooms in construction, roughly 13% of the country’s existing supply.
Egypt’s tourism is on the rebound as STR analysts noted a 16.2% increase in RevPAR which was actually the lowest year-over-year change in the country since October 2016. The absolute ADR level was the highest for any May on record.