MEA hotels increase revPAR, ADR and occupancy

The waste management crisis in Lebanon

STR Global reports that hotels in the Middle East and Africa region reported positive results in three key performance metrics in their compiled July 2015 data.

The biggest rise by some margin was Lebanon, which posted larges increases in these metrics. Despite ongoing problems with infrastructure such as utilities, waste removal as well as suffering terrorist attacks, Lebanon shows increases for occupancy: +45.1% to 56.3%; RevPAR: +57.8%; with general ADR in the country up 8.8%.

Despite positive results in year-on-year results, general performance levels in the country still remain low.

Compared to July 2014, the entire Middle East/Africa region reported a 12.1% increase in occupancy to 55.1%, a 5.3% rise in average daily rate to US $159.10 and an 18.1% increase in revenue per available room to US$87.69.

Saudi Arabia reported a 0.7% increase in occupancy to 59.1%, highest for July since 2012, which may be due to religious travellers - during the last 10 days of Ramadan, Makkah occupancy rose to 82.8%, and ADR increased to SAR3,061.88.

The Kingdom also showed a 1.9% increase in RevPAR.

Manama, Bahrain, saw a 5.6% increase in occupancy to 42.3% as well as good growth in ADR (+19.8%) and RevPAR (+26.5%).

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Bahrain’s increases are notable because July historically is a weak month for the market, according to STR Global analysts, as well as the ongoing political upheaval in the tiny country.

Dubai, UAE reported double-digit growth in occupancy (+24.7% to 57.8%) and RevPAR (+21.9%, though ADR in Dubai fell 2.2% to AED599.62.

ADR in the market has been pressured as year-to-date supply growth (+6.2%) has outpaced demand (+5.1%).

The entire UAE posted double-digit increases in occupancy (+24.1% to 57.6%) and RevPAR (+23.6%), while ADR in the United Arab Emirates was down 0.4% to AED533.88.

Occupancy and RevPAR growth in the market began with the start of Eid al-Fitr. Overall for the two months in which Ramadan occurred, occupancy in the United Arab Emirates increased year-over-year by 1.9% to 59.4%.

Combined ADR for June and July was down 4.5% to AED523.8, and RevPAR dropped 3.2% to AED310.60.