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CONSUMER NEWS

Saudi hospitality market top performer in Mena

Jul 11, 2019 1:08 PM

Despite a drop in earning across the Middle East and Africa (Mena) hospitality sector in May Saudi Arabia s hotel market emerged as the top performer recording the highest occupancy rates and RevPAR. According...

Despite a drop in earning across the Middle East and Africa (Mena) hospitality sector in May, Saudi Arabia's hotel market emerged as the top performer, recording the highest occupancy rates and RevPAR.

According to the May 2019 Mena Hotel Benchmark Survey Report, the majority of the Mena hospitality industry experienced a decrease in earnings during the month as both lower occupancies and lower average room rates reduced overall revenue per average room (RevPAR).

Makkah's hospitality market witnessed an increase in RevPAR of 132.5 per cent when compared to the same period last year. The rise was mainly due to the average room rate (ADR) increasing from $233 in May 2018 to $409 in May 2019. Makkah's occupancy levels also increased by 19.8 per cent, moving up from 61.2 per cent in 2018 to 81 per cent in 2019.

Madinah hotels recorded the highest occupancy levels at 81.7 per cent - up 16.3 per cent compared to May 2018 - with ADR climbing 26.6 per cent to $182 and RevPAR rising 58.3 per cent to $148.

The increase in Madinah and Makkah’s hospitality market may be attributed to the beginning of the holy month of Ramadan, where many worshippers prefer to perform Umrah and visit the holy cities.

Abu Dhabi and Dubai maintained occupancy levels at 56.9 per cent and 55.6 per cent respectively but witnessed a decrease in RevPAR and ADR when compared to the same month last year. Dubai’s hospitality market saw a 20.7 per cent decline in RevPAR in May 2019, mainly due to the reduction in ADR, from $233 in May 2018 to $204 in May 2019.

Furthermore, Abu Dhabi’s hospitality market witnessed a 23.1 per cent drop in RevPAR, from $59 in May 2018 to $46 this May. The decrease was mainly due to the ADR being lowered from $87 in May 2018 to $80 in May 2019, along with a decline in average occupancy by 11.6 per cent when compared to May 2018.

Hotels in Ras Al Khaimah also witnessed declines across the three metrics, with occupancy rates dipping 5.1 per cent to 64.5 per cent, ADR dropping 19.3 per cent to $110 and RevPAR decreasing 25.2 per cent to $71.

Cairo’s hospitality market recorded the steepest decline in occupancy rates during the month of May, dropping 16.3 per cent to 42 per cent. ADR and RevPAR were also down for the month, at $90 (down 9.3 per cent) and  $38 (down 34.7 per cent), respectively.

Muscat saw a major drop in RevPAR in May, dropping 43.1 per cent to $33. Occupancy was also low, down 14.1 per cent to 31.8 per cent and ADR was down 17.9 per cent to $102. - TradeArabia News Service

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