Dubai’s hospitality market was the top performer in November 2016 in the Middle East and North Africa region, representing the highest occupancy at 89.5 per cent and highest revenue per average room (RevPAR) of $250, said a EY report.
Compared to last year, Dubai witnessed a positive increase in occupancy from 84.8 per cent in November 2015 to 89.5 per cent in November 2016, which could be ascribed to the Big 5 exhibition, the largest construction exhibition in the Middle East, being orqanised in November this year, said Yousef Wahbah, Mena head of transaction real estate at EY, commenting on the November GCC key performance highlights.
However, despite having the highest occupancy and RevPAR in Mena, compared to November 2015, average daily rate (ADR) in Dubai dropped by 8.6 per cent resulting in a decline of RevPAR of 3.6 per cent, he said.
Abu Dhabi maintained stable occupancy in November 2016 mainly due to the Formula 1 event allowing hotels to keep their occupancy afloat with no change to last year’s 84.0 per cent. However average daily rate (ADR) decreased by 16.2 per cent year-on-year (y-o-y) and as such, RevPAR decreased by 16.2 per cent in November 2016.
Ras Al Khaimah witnessed a steady performance in hotel performance. Occupancy in November 2016 dropped by 1.6 per cent y-o-y, however a 2.6 per cent increase in ADR resulted in a modest y-o-y RevPAR increase of 0.5 per cent.
Doha witnessed a positive increase in occupancy when compared to November 2015, increasing by 4.0% in November 2016. However, RevPAR dropped by 6.9% from USD 168 in November 2015 to USD 157 in November 2016, the report said.
Saudi Arabia’s hospitality market saw the occupancy and ADR of some of its largest cities (Riyadh, Jeddah) decline in November 2016, resulting in a negative RevPAR performance across all cities.
Oman was able to maintain the same occupancy levels of 76 per cent compared to November 2015, but ADR declined by 16.5 per cent y-o-y, leading to a decline in RevPAR of 16.5 per cent y-o-y.
Kuwait experienced a 3.1 per cent y-o-y increase in ADR, however the drop in occupancy from 57 per cent in November 2015 to 50 per cent in November 2016 resulted in a RevPAR decline of 8.2 per cent in November, the report said.
“Hotel performance has been weak across the region due to slower economic growth, performance is expected to improve in December, in certain markets, as the holiday season attracts more tourists. It is anticipated that the hospitality market across the GCC will continue to face downward pressure on occupancy and ADR during most of 2017,” said Wahbah.
0 comments