A recent report by real estate specialist Cluttons on the hospitality industry in Oman, shows that revenues and occupancy for four- and five-star hotels increased significantly in 2012, driven by local tourism.
Recently released government figures show that both revenues and occupancy for four and five-star hotels in the Sultanate improved last year with occupancy for five-star hotels increasing from 47.9% in 2011 to 54.5% in 2012, while four-star hotels showed an increase from 52.4% to 54.2%.
The market is also characterised by a notable number of new developments. Cluttons predicts that such projects are set to double the supply of three to five-star hotel rooms in the Muscat Governorate over the next five years. Data released by the hospitality consultancy, STR Global, shows that average annual occupancy for higher-rated Muscat hotels also increased by 14.3% to 59.6% in 2012.
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The government figures indicate that the green shoots of recovery being seen in the four- and five-star hotel sector are generally being driven by Omani rather than foreign guests.
The number of Omani guests has increased by 70% from 2009 to 2012, while the number of GCC and European guests, despite showing signs of improvement, remains below those for 2009.
Meanwhile, occupancy rates remain significantly below 2008 national averages of 68.1% for five-star hotels and 66.5% for four star hotels. Four- and five-star hotel revenues have shown a 12.5% (RO 15 million) increase in 2012 in comparison to 2011, but average revenue per guest remains at the same level seen in 2009.
Cluttons’ research shows a significant number of new hotels in the planning or development stage in the Muscat capital area which include Kempinski at The Wave, the Panorama development which will provide a Millennium Hotel and the upcoming Oman Convention & Exhibition Centre, which will provide four high-end hotels, including a Crowne Plaza.
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