STR Reports MEA Hotel Results for November 2015

According to November 2015 data compiled by STR Global, hotels in the Middle East reported negative results, while hotels in Africa recorded mixed results in the three key performance metrics when reported in U.S. dollar constant currency.

Compared to November 2014, hotels in the Middle East subcontinent reported a 3.3% decrease in occupancy to 69.2%, while ADR for the month was down 3.3% to US$204.97. RevPAR dropped 6.5% to US$141.90.

Hotels in the Northern Africa and Southern Africa subcontinents experienced a 5.0% decline in occupancy to 58.8%, and an increase of 9.7% in ADR to US$115.33. RevPAR increased 4.2% to US$67.83.

Countries - Year-on-Year Comparisons

Hotels in Egypt reported decreases in occupancy (-18.7% to 45.2%) and RevPAR (-8.2% to EGP283.26) while ADR was up 13.0% to EGP626.30.

Hotels in Kenya saw occupancy fall 7.4% to 50.8%. However, ADR was up 12.9% to KES14,418.06, and RevPAR rose 4.5% to KES7,320.93. Kenya hosted Pope Francis during his late November trip to Africa, and this helped drive RevPAR performance for the month.

Oman posted a 4.8% rise in occupancy to 69.8%. However, ADR fell 13.2% to OMR74.62, and RevPAR dropped 9.0% to OMR52.05.

Saudi Arabia experienced a 1.4% dip in occupancy to 52.9% but increases in ADR (+2.1% to SAR765.57) and RevPAR (+0.7% to SAR405.02). While RevPAR in the country remained nearly flat, STR Global analysts note significant year-on-year increases in the Medina (+34.0%) and Makkah (+14.1%) markets.

Cities

Abu Dhabi, United Arab Emirates, reported declines across the three key performance metrics: occupancy (-0.8% to 84.0%), ADR (-6.5% to AED737.70) and RevPAR (-7.3% to AED619.38). The performance decreases came even with occupancy levels above 90% during the weekend of the Formula 1 Abu Dhabi Grand Prix (27-29 November).

Johannesburg, South Africa, recorded a 3.9% increase in occupancy to 69.0% as well as double-digit growth in ADR (+14.4% to ZAR900.04) and RevPAR (+18.8% to ZAR621.45). The 69.0% absolute occupancy level was the highest for the month of November in Johannesburg since 2008.