The Cairo hotel market has been hit hard by the turbulence of political revolution, according to new data published by industry experts.
Performance numbers indicate the Egyptian capital’s hotel occupancy levels have been falling continuously since January 29, four days after the first demonstrations started, according to STR Global.
But high demand from press and media organisations arriving to cover the news pushed up average daily rates, it added.
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By the end of February, hotel performance stabilised at very low levels, with occupancy below 20 percent and average room rates of approximately EGP750 ($126.79), which is on par with the same time last year, STR Global, tracks the daily hotel performance from 24 hotels in Cairo, said.
Year to date through March 7, occupancy in Cairo was 38 percent, ADR was EGP793 ($134) and RevPAR was EGP299 ($51), according to STR Global.
“A stable and secure environment is needed to bring visitors back to Egypt, and whilst it is not yet certain when demand will return to normal levels, it is recommendable for the hotels to continue with their current strategy of not dropping average room rates, as it will not stimulate additional demand to counterbalance a potential drop in revenue per available room," said Elizabeth Randall, managing director of STR Global.
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