Two Egyptian cities likely to top MENA hotspots in Q3 - Report

Mubasher: Hospitality market in the Middle East and North Africa (MENA) is expected to see a mixed performance in the third quarter of 2018.

Hurghada and Sharm El Sheikh hotels are likely to top hotspots in the MENA region with 18% and 13% growth, respectively, in terms of revenue per available room in the three-month period to end 31 October, according to a report by Colliers International on Sunday.

Abu Dhabi Beach hotels are expected to maintain solid momentum in occupancy at 70% and in the average daily rate at 176%.

Hotels in Alexandria and Abu Dhabi Beach are forecast to carry on healthy growth in revenue per available room at 4% and 3%, respectively, as both have witnessed a consistent surge in corporate and leisure demand over the past months.

Moreover, Manama has been experiencing limited corporate and meetings, incentives, conventions and exhibitions (MICE) activity followed by subdued leisure demand affecting occupancy and average daily rate.

Revenue per available room at Manama hotels is projected to fall by 9% at the end of October.

In Dubai, hotels in Sheikh Zayed Road and Dubai International Financial Centre (DIFC) are forecast to see a 129% drop in average daily rate during the three-month period that will adversely impact revenue per available room to tumble 8% due to the growing demand from more price sensitive markets.

As for Saudi Arabia, revenue per available room in Riyadh hotels is likely to slip by 4% in the August-October period of this year, while it is likely to increase by 4% in Jeddah hotels.