Vacation
Real Estate News
MENA Region Hotels Deliver Moderate Results in January

MENA Region Hotels Deliver Moderate Results in January


According to STR Global, the Middle East-Africa region reported positive year-over-year performance results in two of the three major metrics during January 2015 when reported in U.S. dollars.

The region reported a 1.2-percent increase in occupancy to 62.8 percent, a 1.0-percent rise in revenue per available room to US$115.61 and a 0.2-percent decrease in average daily rate to US$184.08.

When looking at the region's three sub-regions, Northern Africa saw double-digit growth in RevPAR and occupancy, increasing by 24.2 percent and 14.8 percent, respectively, according to the data. 

Dubai, United Arab Emirates, posted declines in all three performance metrics. The drops were in large part because of the exceptionally strong comparable to January 2014, which was the strongest January performance during the last 10 years, according to Elizabeth Winkle, STR Global's managing director.

"Despite continuous strong supply growth for Dubai (+6.8 percent), occupancy levels managed to stay above 85 percent for January 2015; however, that was three points lower than January 2014", Winkle said. "Demand (+3.7 percent) continued to grow in Dubai, and with the exception of the months of Ramadan, demand growth for the emirate has been positive in every month for the past five years.

"However, the increasing competition continues to put pressure on rate, and there are downside risks that this will continue throughout 2015", she added.

Despite the declines in occupancy (-2.5 percent), ADR (-4.0 percent) and RevPAR (-6.4 percent), Dubai still achieved one of the highest RevPAR actuals (US$242.85) in the Middle East, Winkle said.

South Africa experienced balanced supply growth (+2.2 percent) and demand growth (+2.3 percent), but the sub-region of Southern Africa suffered setbacks in occupancy (-5.0 percent), ADR (-5.4 percent) and RevPAR (-10.1 percent).

"Many countries in the Southern Africa sub-region saw drops from an occupancy perspective but have managed to hold onto rate in the first month of 2015", Winkle said. "Zimbabwe had an occupancy decline of 6.7 percent, however, it achieved an ADR increase of 4.3 percent".

Highlights among the Middle East/Africa region's other key markets for January 2015 include (year-over-year comparisons, all currency in U.S. dollars):

  • Three key markets reported double-digit occupancy increases: Cairo, Egypt (+65.5 percent to 54.8 percent); Beirut, Lebanon (+34.9 percent to 47.1 percent); and Doha, Qatar (+11.8 percent to 83.2 percent).
  • Amman, Jordan, reported the largest occupancy decrease, falling 20.8 percent to 42.5 percent.
  • Doha had the highest increase in ADR (+11.4 percent to US$207.25). Beirut followed with a 9.6-percent increase in ADR to US$166.57.
  • Lagos, Nigeria (-11.6 percent to US$215.02) experienced the largest ADR decline among the key markets.
  • Three key markets reported double-digit RevPAR increases: Cairo (+73.0 percent to US$56.84); Beirut (+47.8 percent to US$78.51); and Doha (+24.5 percent to US$172.34).
  • Three key markets had double-digit RevPAR decreases: Amman (-21.1 percent to US$69.35); Lagos (-14.7 percent to US$109.23); and Nairobi, Kenya (-12.9 percent to US$59.03).

Performances-of-key-countries-in-January-2015.jpg

Sponsored by

Comment with Facebook


Copyright 2010 - 2017 WORLD PROPERTY JOURNAL, INC. All Rights Reserved.
Advertisement
News Search
Go


Luxury Property Spotlight

Reader Poll

Advertisement
Featured International Listings
×
WORLD PROPERTY JOURNAL
 
Free News Alerts
 

Sign up now to receive the latest local & global real estate news in your inbox.

GO