Jeddah hotel performance sees a dip in May

The city also witnessed an increase in the supply of hotel rooms

Image used for illustrative purpose only
Image used for illustrative purpose only

Latest data released by STR revealed that hotels in Jeddah registered a decrease in occupancy, average daily rates (ADR) and revenue per available room (RevPAR) in May 2019.

According to data, occupancy rates dropped by 2.4% to 70.6% when compared to the same period last year, while ADR dropped by 4.9% to SAR1,310.35 ($349.38). Meanwhile, RevPAR dropped by 7.1% to SAR925.07 ($246.65).

A rise in supply was one of the reasons behind the low performance. Despite demand increasing by 3%, supply outweighed it with an increase of 5.5%.

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Analysts from STR added that this “low performance [is] consistent with the time of Ramadan.” They said, “In addition to supply growth, STR analysts note that performance declines were mainly due to the shift in Ramadan dates. Last year, [a major part of] Ramadan occurred during June as opposed to May this year. “The first week of the month saw double-digit decreases in both occupancy and RevPAR, with the steepest occupancy decline of the month (27.8%) occurring on 9 May, 2019,” the group added.

In March earlier this year, Jeddah hotel rates fell to 11-year low. 

Also read: Middle East hotels continue to register drop in RevPAR, ADR.

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