Calendar shift hurts MENA hotels in June

A long summer period affected hotel performance in 2019

The Merchant House, Bahrain
James McDonald 2019jamesmcdonaldphotographygooglemailcom
The Merchant House, Bahrain

HotStats is blaming June's 6.4% year-over-year decline in profit per room in Middle East and North Africa hotels to a calendar shift. Because the holy month of Ramadan was largely in May this year, hotel demand for the subsequent month was down significantly.

The 10.2% increase in room occupancy in June to 65% came at the expense of achieved average room rate, which plummeted 18% year over year to $149.12. Following the year-to-date peak in achieved average room rate at $183.65, which occurred in May, the metric fell almost $35 in June. 

The 2.7% decline in revenue per available room was tempered by an increase in ancillary revenue, which included a 0.2% uptick in food and beverage revenue and a 17.8% jump in leisure revenue.

Did you like this story?
Click here for more

As a result, total RevPAR at hotels across the region fell 1.4% in June to $171.34, and despite their best efforts to manage costs, illustrated by the 0.1% savings in payroll to $56.83 per available room, profit levels at MENA hotels fell to $47.25 in the month. This was the lowest profit per room recorded in 2019 and 57.1% below the year to date figure of $74.21.

The shift was particularly impactful for hotels in Makkah, Saudi Arabia, which suffered a 69.8% year-over-year drop in profit per room to $120.54. On the other hand, the study notes that this was on the back of an outstanding May, when gross operating profit per available room hit a recent high of $472.27.

For hotels in Makkah, the drop in profit was as a result of a decline across all metrics, led by a 59.5% decrease in RevPAR to $170.69, contributing to a 58.7% year-over-year decline in total RevPAR to $220.83.

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular



Human Capital Report 2017

Human Capital Report 2017

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people. The report combines the results of Hotelier Middle East's HR Leaders Survey with exclusive interviews with the region's senior human resources directors.

Hotelier Middle East Housekeeping Report 2016

Hotelier Middle East Housekeeping Report 2016

The Hotelier Middle East Housekeeping Report 2016 provides essential business insight into this critical hotel function, revealing a gradual move towards the use of automated management and a commitment to sustainability, concerns over recruitment, retention and staff outsourcing, and the potential to deliver much more, if only the industry's "image problem" can be reversed.

From the edition

From the magazine