MENA hospitality market sees drop in performance during October 2018

19 December 2018

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  • Dubai recorded the highest RevPAR in the region with US$234 in October 2018
  • Doha recorded the highest y-o-y increase in occupancy rates, up by 15.3% points in October 2018
  • Cairo was the only city to see improvements across all KPIs in October 2018

19 December 2018: According to the EY Middle East Hotel Benchmark Report, the majority of cities in the region experienced a decline in occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) during the month of October 2018, with few improvements year on year (yoy).

Top MENA Hospitality Performance
Cairo led the MENA region in hospitality performance during October 2018 as the only city witnessing improvements across all KPIs yoy. The increase in occupancy by 13.7% points to 78.3% in October 2018, up from 64.6% in October 2017, and the increase in average daily rate (ADR) by 6.1% to US$95 in October 2018, up from the $US90 recorded at the same time last year, led to an overall RevPAR increase of 28.7% to US$75 in October 2018.

Dubai recorded the highest RevPAR in October 2018 at US$234, up from US$231 in October 2017, an increase of 1.3%.

Doha saw the highest jump in occupancy, recording an increase of 15.3% points to 69.2% in October 2018, up from 53.9% during the same period last year.

Dip in Hospitality Market KPIs
Various cities across the MENA region saw a dip in their RevPAR as a result of decreased occupancy and ADR. Muscat experienced the biggest decline in RevPAR recording US$91 in October 2018, a 40.5% decrease from the US$153 recorded in October 2017. However, upcoming events such as the Muscat Food Festival and the launch of new flights from South Asian countries and Mauritius should help improve performance during the rest of the tourism season.

Both Riyadh and Makkah experienced an increase in occupancy, 4.6% points and 2% points respectively in October 2018, but were affected by the drop in ADR, resulting in a RevPAR decline of 1.2% in Riyadh and 17.2% in Makkah in October this year.

Yousef Wahbah, MENA Real Estate, Hospitality and Construction Sector Leader, EY says:
“The performance across the MENA region in October 2018 saw a decline in occupancy, ADR, and RevPAR in most markets. Some cities are currently experiencing a dip due to an increase in supply in the market. Other cities can expect an improvement in market performance for the rest of the year as the weather conditions improve and economic and business conferences resume. Additionally, we expect that the rise in adventure and eco-tourism will continue providing a boost to the region’s hospitality segment, particularly in cities such as Abu Dhabi, Ras Al Khaimah, Amman, and Cairo.”

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About the EY Middle East Hotel Benchmark Survey Report

The EY Middle East Hotel Benchmark Survey Report provides a monthly performance overview of leading hotels in the region. The hotels surveyed include international branded and operated properties across the five-star and four-star segments.

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