Occupancy rates in Oman's Muscat drops by 8.6% since February 2018
Hotelier Middle East has learned that occupancy levels in Muscat have declined by over 8% in the past year.
Despite reputable hotel chains such as JW Marriott entering the Oman market recently, Hotelier Middle East has learned that occupancy levels in Muscat have declined by over 8% in the past year.
Speaking to Tri Consulting director Christopher Hewitt, he told Hotelier Middle East that Oman’s hotel industry has experienced a “challenging year” due to corporate demand and economic struggles.
He added that although the hotel industry is currently struggling in Muscat, it is unlikely to improve due to poor regional demand.
“As Oman continued to face economic headwinds on the back of low oil prices and lower government spending, the hotel sector in the capital saw demand levels fall, driving lower revenues and profits,” Hewitt told Hotelier Middle East.
“Muscat’s four and five-star hotel market saw an 8.6% decline in occupancy to 61.3%, on the back of weaker demand and increased supply. The decline in occupancy levels directly impacted RevPAR which fell 9.0% to US$ 120.2.”
Commenting on the market outlook, Hewitt did not expect to see any improvements for Oman’s capital, with the economic forecast remaining “muted”.
“The main pressure on performance will be driven by not only lower demand but also the entry of new properties which will further increase the supply and demand imbalance,” Hewitt added.
“Based on supply projections Muscat is expected to witness another 2,200 keys enter the market in 2019 with the majority of new properties positioned as upscale or higher.”
According to a previous article, monthly statistics released by the National Centre for Statistics and Information (NCSI), said that hotel occupancy rates fell by 2.7% to reach 62.4% in January against 64.2% last year for the whole of Oman.