ME hotels post mixed results in 2019

Wednesday, 29 January 2020 00:00 - - {{hitsCtrl.values.hits}}

Hotels in the Middle East reported mixed performance results in 2019, while hotels in Africa posted positive results across the three key performance metrics, according to data from STR – a leading market research firm.

Occupancy levels in the Middle East moved up 2.3% to 66.2% but average daily rate (ADR) declined 7.2% to $ 143.70, forcing revenue per available room (RevPAR) to drop 5.1% to $ 95.09.

In Beirut, Lebanon, occupancy rates were recorded at 53.4% in 2019, an 8.6% drop compared to the same period in 2018. ADR was up 6.9% to LBP 245,325.04 ($ 162.7) but RevPAR declined 2.3% to LBP 131,066.36 ($ 86.9). While Beirut recorded its highest Q1 RevPAR level (LBP 128,581.91/$ 85.2) since 2012, the Q4 level in the metric (LBP 60,847.25/$ 40.3) was the lowest for any fourth quarter in STR’s Beirut database. STR analysts note that protests and subsequent political turmoil in Lebanon negatively affected performance near the end of the year and pulled down total-year numbers in the market. November and December RevPAR dropped significantly, down 75.7% and 68.0%, respectively.

In Africa, occupancy rates climbed up 1.1% to 61.3% in 2019 with ADR also jumping 1.5% to $ 109.33. RevPAR was also up 2.6% to $ 67.01.

In Sharm El Sheikh, Egypt, occupancy was up 10.3% to 60.0%, pushing ADR up 9.9% to EGP 1,196.18 ($ 75.5). RevPAR increased signinficantly by 21.2% to EGP 717.73 ($ 45.3).

Occupancy in Sharm El Sheikh has grown for 31 consecutive months. STR analysts note that double-digit demand growth (up 10.3%) was coupled with flat supply comparisons, continuing the consistent occupancy growth and lifting pricing confidence.