Jeddah Season contributes to Saudi’s H1 occupancy, ADR continues to drop
This is the first time in four years that Jeddah’s occupancy rose in H1
Occupancy in Makkah rose by 12%, followed by Dammam/Khobar that increases by 8% when compared to 2018. While Madinah did not record an increase or decrease, occupancy in Riyadh increased by 4%, followed by Jeddah that rose by 2% in comparison to the same period last year.
According to analysts at Colliers, the Jeddah Season had a marked effect on the city’s occupancy, combined with few properties entering the supply in H1 2019. “This has halted a four-year trend of year-on year occupancy decline in H1 for the Jeddah hospitality market”.
Average daily rates continue to drop
Despite a rise in occupancy levels, cities across Saudi registered low ADR figures for H1 2019.
Leading the list is Dammam/Khobar that registered a decrease of 15% in ADR, while Madinah was second on the list with a drop of 12% when compared to the same period last year.
Riyadh and Jeddah recorded a drop of 8% in ADR, while Madinah saw a decrease of 4% when compared to the same period in 2018.