STR: Occupancy on the rise in Middle East hotels

STR: Occupancy on the rise in Middle East hotels

Hotels in the Middle East reported mixed November 2016 results, while hotels in Africa posted positive results in the three key performance metrics when reported in US dollar constant currency, according to data from STR.

Compared with November 2015, the Middle East recorded a 3.1 per cent increase in occupancy to 71.3 per cent.

However, a 7.7 per cent drop in average daily rate to US$182.60 pulled revenue per available room (RevPAR) down 4.8 per cent to US$130.27.

Africa experienced a 1.2 per cent increase in occupancy to 59.9 per cent.

That coupled with an 18.6 per cent spike in ADR to US$118.59 pushed RevPAR up 20 per cent to US$71.01.

Abu Dhabi, United Arab Emirates, reported a 3.2 per cent decline in occupancy to 81 per cent and a 10.6 per cent decrease in ADR to AED659.73, resulting in a 13.5 per cent drop in RevPAR to AED534.11.

STR analysts note that November is a traditionally strong month for Abu Dhabi, but supply growth (up 3.5 per cent year to date) continues to drive negative year-over-year performance.

While November as a whole showed negative figures, the market did achieve four consecutive days with ADR above AED1,000 thanks to the Formula 1 Abu Dhabi Grand Prix.