Expert analysis: Egypt, Saudi hotels Q4 forecast
Sep 2018 – Nov 2018, three-month rolling forecast highlights
The Red Sea resorts continue to benefit from positive security perceptions and return of chartered flights. Growth is driven by both ADR and occupancy due to strong corporate, leisure and MICE activity. The major Egyptian markets are forecasted to see an average RevPAR growth of 22% for the period of September to November 2018 in comparison to the same period last year.
The Abu Dhabi beach hotels continue to witness strong momentum in occupancy and ADR. This trend is expected to continue in the following three months, mostly driven by the leisure segment. With the growth in occupancy and ADR, the RevPAR is forecasted to close above last year by 1%.
The major hotel markets in Dubai are experiencing growing demand from more price-sensitive source markets resulting in a drop in ADR, which is adversely impacting the RevPAR.
Amongst the Saudi markets, hotels in Jeddah have achieved higher performance levels in comparison to last year, mostly driven by the ADR. The RevPAR for Jeddah market is forecasted to grow by 7%. Makkah and Madinah markets are expected to achieve relatively similar performance levels in comparison to the same period last year.