Thursday, Oct 08, 2015

Dubai: Average room rates (ARR) of four-and five-star hotels in the Middle East dropped January to August, according to a survey by HotStats, a global hotel research firm.

In Dubai, ARR was down to $305.86 (Dh1,123) during the eight month period from $327.49 in the comparable period last year, while occupancy edged up to 79.5 per cent from 78.7 per cent, resulting in revenue per available room RevPAR (revenue per available room (an industry measurement of occupancy and room rates) to fall to $243 from $257.

ARR of hotels in Jeddah fell from $278.66 to 273.65 year to August and occupancy edged down from 79 per cent to 78.7 per cent. RevPAR, as a result, decreased from $220 to $215.

In Amman, Jordan, ARR this year was down to $156 from $165, while occupancy declined to 56.8 per cent from 64 per cent, causing RevPAR to drop to $88.66. However, Cairo hotels posted an ARR of $113.4 from $104 the same period a year ago and a RevPAR of $61.5 from $43.97, helped by an increase in occupancy to 54 per cent.

Year-on-year in August, ARR declined 1.6 per cent to $134.5, while occupancy edged down 1.1 per cent to 62.9 per cent, pushing down RevPAR 2.7 per cent to $84.57, as per a report by research firm STR Global.

In Dubai, ARR fell 10.8 per cent to $196.49 during the same period, which combined with a 0.6 marginal increase in occupancy to 75 per cent, pulled down RevPAR by 10 per cent to $147.45, according to the HotStats survey.

The lower revenues weighed down on total revenue per available room (TRevPAR), falling 10.6 per cent to $271. Profitability was also down, with gross operating profit per available room (GOPPAR) plummeting 9.8 per cent to $69.10.

ARR also dropped year-on-year in August elsewhere in the Gulf. In Kuwait, ARR declined 6 per cent to 65.75 Kuwaiti dinars and occupancy fell 7.8 per cent to 39.6 per cent, which caused RevPAR to decrease 13.3 per cent 26.04 Kuwaiti dinars, said STR Global in its report.

Oman hotels posted a 6.9 per cent drop in ARR to 65.19 Omani riyals during the same period, while occupancy edged down 3.7 per cent to 47.5 per cent, leading RevPAR to fall 10.4 per cent to 30.94 Omani riyals.

According to another report by STR Global, “the months during and post-Ramadan have produced weak performance results in Oman during the last five years. Over the same years, performance has improved in September and October.”

In Doha, Qatar, however, ARR edged up 0.8 per cent to 633.75 Qatari riyals, while RevPAR dropped 5.9 per cent to reach 387 Qatari riyals, resulting in a 6.7 per cent decrease in occupancy to 61.1 per cent.

Similarly, Jeddah hotels recorded a 3.3 per cent drop in ARR to $286.66, while occupancy edged up 6.3 per cent to 83 per cent. This resulted in a 4.5 per cent increase in RevPAR to $238.7, according to the HotStats survey.

Meanwhile in Cairo, Egypt, ARR jumped 10.9 per cent to $123.44, and RevPAR rose 3.2 per cent to $72.61, despite a 4.4 decline in occupancy to 58.8 per cent. TRevPAR was weighed down by soft food and beverage demand, causing a 0.7 per cent decrease to $133.37.

Additionally, Amman, Jordan hotels posted a 5.5 per cent decline in ARR to 111.49 Jordanian dinars, while occupancy was down 7 per cent to 63.4 per cent. This pushed down RevPAR 12.2 per cent to 70.7 Jordanian dinars, STR Global stated in its report.

Staff Report

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