Middle East's hotel performance increases in July 2020

The region’s hospitality industry saw slight improvements compared to June

COVID-19

The hospitality industry in the Middle East and Africa (MEA) continues to see marginal improvements each month as properties adapt to COVID-19. According to the latest data from STR, July was a stronger month than June, though performance as a whole is still low compared to pre-pandemic.

For the Middle East, occupancy was down 41.8 percent to 35.3 percent compared to July 2019. Average daily rate (ADR) meanwhile fell 9.6 percent to US$106.93, and revenue per available room (RevPAR) dropped 47.4 percent to $37.70.

Compared to June 2020, this is a step towards the right direction for the Middle East, where occupancy was just 33.6 percent the month previous. ADR and RevPAR also improved from $97.31 and $32.72 respectively.

Looking at the UAE individually, occupancy in July 2020 was down 40.7 percent to 37.8 percent. ADR only fell by 3.6 percent to AED326.98, though RevPAR slipped by 42.9 percent to AED123.44.

Saudi Arabia had a trickier July this year, with occupancy dropping 47.4 percent to 31.9 percent, ADR shrinking by 12.9 percent to SAR520.11 and RevPAR spiralling by 54.1 percent to SAR165.70.

African hotels are still struggling compared to the Middle East. Occupancy in the region fell 72.9 percent to 16.9 percent. ADR fared the best, losing only 10.8 percent to sit at $93.98. RevPAR crashed 75.8 percent compared to July 2019 to $15.91.

Again, there are signs the region is recovering as occupancy in June 2020 was 13.8 percent, ADR was $74.13 and RevPAR was $10.23.

Despite month-over-month improvements, both the Middle East and Africa saw their lowest absolute occupancy and RevPAR levels for any July on record, said STR.

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