According to STR’s Middle East/Africa October 2017 hotel performance data, hotels in the Middle East reported occupancy rose 3.3% to 64.9%, but witnessed a 4% ADR drop to US $163.27, causing RevPAR to fall 0.8% to $106.04.
Bahrain posted an occupancy jump of 9.2% to 49.2%. STR analysts commented that the year-over-year increase in occupancy came in comparison with a low base from October 2016. The country’s absolute occupancy level was helped by a couple of events in Manama: the Federation of Afro-Asian Insurers and Reinsurers 25th Conference (October 9-11)and the Bahrain International Defence Exhibition and Conference (October 16-18). However, ADR dropped by 8.2% to BHD 58.71 ($156), making it the lowest for an October in Bahrain since 2006. RevPAR was flat, with a 0.2% increase to BHD 28.86 ($77).
Meanwhile, demand in terms of room nights sold in Egypt grew by double digits in nine of 10 months in 2017 as the country continues to recover from security concerns. Its occupancy rose by 32% to 57%, the growth being inflated by a comparison with Egypt’s second-worst October occupancy month on record (43.2% in 2016). STR analysts noted that the devaluation of the Egyptian pound led to the highest October ADR value on record for the country: EGP 1,151.26 ($65), showing a 73.6% rise. Following from this, RevPAR rose 129.3% to EGP 656.07 ($37).
Africa saw occupancy increase 7.6% to 62.5%, ADR increase 8.4% to $105.89 and RevPAR jump 16.7% to $66.14.
Kenya reported negative results in its metrics, however, with occupancy slumping by 26.4% to 40.7% – the lowest for any October on record. ADR was in line with recent trends, at KES 11,937.82 ($116; falling by 10.7%). RevPAR (KES 4,861.17/$47) was down by 34.2% in comparison to October 2016. According to STR analysts, political struggles in the country affected hotel demand (room nights sold), and the steepest daily RevPAR declines occurred on the days around the election (October 26).
