Hotels across Saudi Arabia have had a mixed Q2 performance with Makkah and Madinah reporting increased occupancy and ADR.
Findings from Colliers Q2 market performance report for Saudi Arabia reported that Makkah saw a large YoY increase in Q2 2016 in both occupancy and ADR due to Ramadan moving forward in the Georgian calendar.
In the month of June 2016 alone, the market achieved occupancy of 80.7% representing a 24% increase for the same month in 2015. ADR benefitted from the Holy Month of Ramadan too as ADR reached US $467 (a 70% YoY increase from 2015).
Madinah also experienced an increase in ADR and occupancy but not as strong as the one Makkah recorded as lesser pilgrims tend to arrive in Madinah as compared to Makkah, the report’s finding stated.
Madinah recorded an ADR of $131 for the first five months of 2016, but that number rose to $188 in June. Ramadan was a major factor to drive ADR up during this time.
Elsewhere, Riyadh and Jeddah did not have as profitable a Q2. Both occupancy and ADR faltered in Riyadh due to a decrease in corporate and government demand. Full year performance is expected to close below last year as the market sees the addition of new properties and completion intensifies.
For Jeddah’s hotels, Q2 saw occupancy figures drop 8% YoY to 68%. Although occupancy is expected to drop lower due to lower corporate demand, Jeddah’s ADR levels ($ 259) are benefitting from a diversified demand base.
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