Riyadh hotels make comeback from summer slump

Riyadh-based hotels showed a strong come back as indicators bounced back from the slump seen during the summer months, according the latest Hotstats by TRI Consulting survey of full service hotels in seven MENA cities comparing September 2012 to the same period last year

When compared to the same period last year, occupancy rates in Riyadh show an increase of 4.1 percentage points reaching 60.5% while ARR increased 1.6% to US $250.60, among the highest in the region.

“The steep increase in Riyadh’s performance is symptomatic of post-summer lulls, as businesses get back on track and corporate demand is spurred. Festivities and events halted during the holy month resumed, accounting for a large increase in food and beverage revenues which drove an increase in the bottom line,” commented Goddard, managing director of TRI Hospitality Consulting in Dubai.

Food and beverage revenues increased significantly suggesting an increase in events previously paused in accordance with the holy month of Ramadan. This upsurge in festivities accounted for a 10.5% rise in TRevPAR as well as a 10.1% increase in profits to US$131.4.

Similarly, hotel performance in Jeddah showed no signs of slowing as occupancies rose 6.2 percentage points to 81.5% in addition to a 3.9% increase in ARR to $222.29.

A rise in corporate demand owing to the return of business activity justified the 12.6% increase in RevPAR to US$181.24 which, coupled with an increase in food and beverage revenues, drove a growth in TRevPAR of 10.1% to US$278.90 leading to an 11.8% increase in GOPPAR to US$123.03.