27 February 2013
Commenting on the survey, Yousef Wahbeh, MENA Head of Transaction Real Estate at Ernst & Young said: "2012 has been a successful year for hotels in the Middle East and North Africa (MENA) region and occupancy rates have shown a marked improvement. Dubai hotels, in particular, have made remarkable progress over the past year, with their occupancy rates notably higher than those in 2011. In addition, room yield (RevPAR) and average room rates in Dubai have increased - a significant achievement considering the substantial additions to the total available rooms in the past year. Despite the typical slow season during the summer months and a slight decline in numbers during the Ramadan season, Dubai hotels have increased their efficiency, profitability, and occupancy levels and we have seen some of these same positive progressions across the region.
In December 2012, the overall occupancy rate in Dubai was at 81.0% year-to-date, rising by 3.0% from the same period of last year. In terms of monthly performance, Dubai's overall occupancy rate was at 83.6%. In addition, RevPAR increased by 10.4% year-to-date and 6.8% in terms of monthly performance, as average room rate also increased by 7.3% year-to-date and 6.4% in terms of monthly performance.
December has also been a successful month for hotel occupancy in other parts of the UAE. Abu Dhabi saw overall occupancy rise to 76.0% year-to-date, while Al Ain saw a 3.0% increase in its overall occupancy rate year-to-date. In terms of monthly performance, Abu Dubai had an overall occupancy rate of 80.0%, a 2.0% rise year-to-date and Al Ain's overall occupancy rose by a notable 8.0% year-to-date.
Egypt witnessed very positive changes in December, with overall year-to-date occupancy rates increasing in Cairo, by 8.0%, Hurghada, by 8.0%, and most notably in Sharm El Shaikh, by 12.0%, bringing its overall occupancy to 70.0%. In terms of monthly performance, these three cities also increased in overall occupancy, Cairo by 8.7%, Hurghada by 8.0%, and Sharm El Shaikh by 5.0%. Additionally, Cairo had a RevPAR increase of 5.7%, Hurghada increased by 4.0%, and Sharm El Shaikh had a notable increase of 15.5% year-to-date. The prominent increases for Sharm El Shaikh may be due to a typical increase in tourists during the holiday period, as well as the welcoming climate in the area in December. In addition, the recent developments in Egypt may also be a factor in these increases.
Saudi Arabia did not see significant changes in terms of occupancy rates, however the cities of Jeddah, Madina, Makkah and Riyadh all remained at a stable incline across the board. Most notably, Jeddah, with an overall occupancy rate of 80.0% year-to-date, rose by 7.0% compared to this time last year. Additionally, overall occupancy in Madina increased by 3.0%, with Makkah and Riyadh both increasing by 2.0% year-to-date. In terms of monthly performance, Makkah stood out, increasing by 13.0% to an overall occupancy rate of 70.0%.
The improving economic climate in the UAE has spurned new tourist attractions and has further enhanced the country's reputation as a key holiday destination. The increasing influx of tourists has boosted hotel performance in Dubai in particular, due to the steady stream of events, festivals and conferences across the year. The MENA region is setting up for a successful 2013 in terms of hotel occupancy due to increased political and economic stability. 2012 ended with a strong performance and we anticipate this to continue into 2013 where the upcoming months will play host to several high-level conferences, exhibitions, events and expos throughout the MENA region, especially in the first few months of the year."
Commenting on the survey, Yousef Wahbeh, MENA Head of Transaction Real Estate at Ernst & Young said: "2012 has been a successful year for hotels in the Middle East and North Africa (MENA) region and occupancy rates have shown a marked improvement. Dubai hotels, in particular, have made remarkable progress over the past year, with their occupancy rates notably higher than those in 2011. In addition, room yield (RevPAR) and average room rates in Dubai have increased - a significant achievement considering the substantial additions to the total available rooms in the past year. Despite the typical slow season during the summer months and a slight decline in numbers during the Ramadan season, Dubai hotels have increased their efficiency, profitability, and occupancy levels and we have seen some of these same positive progressions across the region.
In December 2012, the overall occupancy rate in Dubai was at 81.0% year-to-date, rising by 3.0% from the same period of last year. In terms of monthly performance, Dubai's overall occupancy rate was at 83.6%. In addition, RevPAR increased by 10.4% year-to-date and 6.8% in terms of monthly performance, as average room rate also increased by 7.3% year-to-date and 6.4% in terms of monthly performance.
December has also been a successful month for hotel occupancy in other parts of the UAE. Abu Dhabi saw overall occupancy rise to 76.0% year-to-date, while Al Ain saw a 3.0% increase in its overall occupancy rate year-to-date. In terms of monthly performance, Abu Dubai had an overall occupancy rate of 80.0%, a 2.0% rise year-to-date and Al Ain's overall occupancy rose by a notable 8.0% year-to-date.
Egypt witnessed very positive changes in December, with overall year-to-date occupancy rates increasing in Cairo, by 8.0%, Hurghada, by 8.0%, and most notably in Sharm El Shaikh, by 12.0%, bringing its overall occupancy to 70.0%. In terms of monthly performance, these three cities also increased in overall occupancy, Cairo by 8.7%, Hurghada by 8.0%, and Sharm El Shaikh by 5.0%. Additionally, Cairo had a RevPAR increase of 5.7%, Hurghada increased by 4.0%, and Sharm El Shaikh had a notable increase of 15.5% year-to-date. The prominent increases for Sharm El Shaikh may be due to a typical increase in tourists during the holiday period, as well as the welcoming climate in the area in December. In addition, the recent developments in Egypt may also be a factor in these increases.
Saudi Arabia did not see significant changes in terms of occupancy rates, however the cities of Jeddah, Madina, Makkah and Riyadh all remained at a stable incline across the board. Most notably, Jeddah, with an overall occupancy rate of 80.0% year-to-date, rose by 7.0% compared to this time last year. Additionally, overall occupancy in Madina increased by 3.0%, with Makkah and Riyadh both increasing by 2.0% year-to-date. In terms of monthly performance, Makkah stood out, increasing by 13.0% to an overall occupancy rate of 70.0%.
The improving economic climate in the UAE has spurned new tourist attractions and has further enhanced the country's reputation as a key holiday destination. The increasing influx of tourists has boosted hotel performance in Dubai in particular, due to the steady stream of events, festivals and conferences across the year. The MENA region is setting up for a successful 2013 in terms of hotel occupancy due to increased political and economic stability. 2012 ended with a strong performance and we anticipate this to continue into 2013 where the upcoming months will play host to several high-level conferences, exhibitions, events and expos throughout the MENA region, especially in the first few months of the year."
© Press Release 2013
