Middle East hotels see mixed performance in May

Hotels in the Middle East reported mixed performance results in May, while hotels in Africa posted declines across the three key performance metrics, according to data from STR - a leading market research firm.

Occupancy levels in the Middle East dipped 8.6 per cent to 52.0 per cent and revenue per available room (RevPAR) was down 0.4 per cent to $85.75, however, average daily rate (ADR) moved up 8.9 per cent to $164.87.

In Makkah, occupancy rates were recorded at 77.2 per cent in February, a 30.5 per cent increase compared to the same period in 2018. ADR was up 67.6 per cent to SR1,446.79 ($385.6) while RevPAR jumped up a staggering 118.7 per cent to SR1,116.61($297.6).

The absolute values in each of the three key performance metrics were the highest for any May in STRs Makkah database. STR analysts note that performance in the holy city was helped by Ramadan, as the number Umrah pilgrims continue to rise. Year-over-year comparisons were boosted even further by a favourable calendar shiftmore Ramadan dates fell in May of this year than May 2018.

In Abu Dhabi, occupancy dropped 14.9 per cent to 52.2 per cent, pushing ADR down 4.4 per cent to Dh335.39 ($91.2). As a result, RevPAR decreased by 91.2 per cent to Dh175.10($47.6).

STR analysts attribute the performance declines to supply growth and the negative side of the Ramadan calendar shift. The market sees less business during the holy month, and while a majority of hotels ran special Ramadan offers to help stimulate demand, the number of rooms sold in the market fell 10.3 per cent year over year. Supply, however, jumped 5.3 per cent.

Hotels in Africa also witnessed a declining trend in May, with occupancy rates dipping 5.6 per cent to 51.2 per cent, ADR dropping 0.4 per cent to $99.30 and RevPAR going down 5.9 per cent to $50.82. - TradeArabia News Service