Hotels in MEA Report 5.7% Drop in ADR and 2.9% Decline in RevPAR

According to data compiled by STR Global, hotels in the Middle East/Africa region reported mixed year-on-year results in the three major performance metrics during May 2015 when reported in U.S. dollars.

The region reported a 3.0% increase in occupancy to 65.1%, a 5.7% drop in ADR to US$142.54 and a 2.9% decrease in RevPAR to US$92.81.

When looking at the three Middle East/Africa subregions, Northern Africa posted the largest increase in occupancy (+15.6% to 61.6%) and the only increase in RevPAR (+8.7% to US$53.96). None of the subregions showed an increase in ADR.

Southern Africa reported the largest declines in ADR (-9.8% to US$110.14) and RevPAR (-7.5% to US$65.10).

Amongst the countries in the region, Egypt experienced the highest increases in all three key performance measurements. Occupancy in the country was up 29.7% to 62.6%, ADR rose 14.4% to US$75.78, and RevPAR increased 48.3% to US$47.43.

Zimbabwe was the only other country to report a double-digit increase in RevPAR, up 12.5% to US$47.52. Occupancy in Zimbabwe increased 5.0% to 48.1%, and its ADR rose 7.2% to US$98.89.

Jordan experienced the largest decrease in occupancy, down 11.5% to 58.2%. Affected by an influx of refugees from neighbouring Syria, Jordan’s situation was felt most significantly by the hotel industry in its capital city (Amman).

Morocco reported the steepest declines in ADR (-18.4% to US$102.18) and RevPAR (-22.3% to US$64.68). Moroccan international demand has been affected by the French economy, which has not fared favourably recently.

Highlights amongst the Middle East/Africa region’s key markets for May 2015 include (year-on-year comparisons, all currency in U.S. dollars):

Cairo, Egypt, reported the largest increase in occupancy, up 50.4% to 63.5%.

Amman, Jordan (-16.9% to 61.6%), and Manama, Bahrain (-12.1% to 50.1%), were the two markets to experience double-digit occupancy decreases.

Doha, Qatar, posted the largest increase in ADR, up 8.2% to US$192.90.

Amman saw the largest drop in ADR, down 15.8% to US$157.74, followed by Sandton, South Africa and surrounding areas (-13.0% to US$98.15), and Muscat, Oman (-10.3% to US$168.33).

Cairo recorded the largest rise in RevPAR, up 58.6% to US$64.97. No other market reported double-digit RevPAR growth.

Amman experienced the largest decrease in RevPAR, down 30.0% to US$97.10.