15 May 2013
Muscat: Revenue and occupancy of four and five-star hotels in the country increased significantly in 2012, driven by Omani rather than foreign guests. The market is also characterised by a notable number of new developments, according to a report on hospitality industry released by Cluttons yesterday.
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. Recently released government figures show that occupancy for five star hotels across the Sultanate increased from 47.9 per cent in 2011 to 54.5 per cent in 2012, while four star hotels showed an increase from 52.4 per cent to 54.2 per cent.
Data released by the hospitality consultancy, STR Global, shows that average annual occupancy for higher rated Muscat hotels increased by 14.3 per cent to 59.6 per cent in 2012. 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 per cent from 2009 to 2012, while the number of Gulf Cooperation Council (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 per cent for five star hotels and 66.5 per cent for four star hotels. Four and five star hotel revenues have shown a 12.5 per cent (OMR15 million) increase in 2012 in comparison to 2011, but average revenue per guest remains at the same level seen in 2009.
New hotels
Cluttons' research shows a significant number of new hotels in the planning or development stage in the Muscat capital area. The five-star Kempinski Hotel under development at The Wave by the Omani Hospitality Company, scheduled to be completed during the first half of 2015. The four-star Best Western Premier opened in Al Khuwair at the end of 2012. The four-star Holiday Inn Seeb, which is being developed for Action Hotels and is expected to open in mid-2013.
The Panorama, development by Allied Real Estate, is under construction in Al Khuwair and will have a Millennium Hotel and Somerset Serviced Residences, while proposals are afoot for InterContinental Hotel at Muscat Hills Golf & Country Club.
Another five star Azaiba Hotel is under construction at Airport Heights. The upcoming Oman Convention & Exhibition Centre, which will provide four high end hotels, including a Crowne Plaza.
Higher rated hotels are starting to show some signs of improvement in performance after a noticeable slump following the global financial downturn that occurred in 2008. Cluttons believes the increased supply of highly rated hotels will provide a further impetus to the sector by offering greater competition and choice to hotel guests. Cluttons expects the number of three to five star hotel rooms in the Muscat area to double over the next five years.
Muscat: Revenue and occupancy of four and five-star hotels in the country increased significantly in 2012, driven by Omani rather than foreign guests. The market is also characterised by a notable number of new developments, according to a report on hospitality industry released by Cluttons yesterday.
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. Recently released government figures show that occupancy for five star hotels across the Sultanate increased from 47.9 per cent in 2011 to 54.5 per cent in 2012, while four star hotels showed an increase from 52.4 per cent to 54.2 per cent.
Data released by the hospitality consultancy, STR Global, shows that average annual occupancy for higher rated Muscat hotels increased by 14.3 per cent to 59.6 per cent in 2012. 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 per cent from 2009 to 2012, while the number of Gulf Cooperation Council (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 per cent for five star hotels and 66.5 per cent for four star hotels. Four and five star hotel revenues have shown a 12.5 per cent (OMR15 million) increase in 2012 in comparison to 2011, but average revenue per guest remains at the same level seen in 2009.
New hotels
Cluttons' research shows a significant number of new hotels in the planning or development stage in the Muscat capital area. The five-star Kempinski Hotel under development at The Wave by the Omani Hospitality Company, scheduled to be completed during the first half of 2015. The four-star Best Western Premier opened in Al Khuwair at the end of 2012. The four-star Holiday Inn Seeb, which is being developed for Action Hotels and is expected to open in mid-2013.
The Panorama, development by Allied Real Estate, is under construction in Al Khuwair and will have a Millennium Hotel and Somerset Serviced Residences, while proposals are afoot for InterContinental Hotel at Muscat Hills Golf & Country Club.
Another five star Azaiba Hotel is under construction at Airport Heights. The upcoming Oman Convention & Exhibition Centre, which will provide four high end hotels, including a Crowne Plaza.
Higher rated hotels are starting to show some signs of improvement in performance after a noticeable slump following the global financial downturn that occurred in 2008. Cluttons believes the increased supply of highly rated hotels will provide a further impetus to the sector by offering greater competition and choice to hotel guests. Cluttons expects the number of three to five star hotel rooms in the Muscat area to double over the next five years.
© Times of Oman 2013
