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STR Global posts Middle East/Africa June 2010 results

STR Global posts Middle East/Africa June 2010 results

The Middle East/Africa region reported favourable results in the three key performance measurements for June 2010 when reported in U.S. dollars, according to data compiled by STR Global.

The region’s occupancy rose 1.7 percent to 59.2 percent, average daily rate increased 14.3 percent to US$151.00, and revenue per available room grew 16.3 percent to US$89.37.

“The first six months of 2010 saw a mixed performance across Middle East/Africa”, said Elizabeth Randall, managing director of STR Global. “Africa’s improving results boosted the region’s overall performance, ending year-to-date with a 2.6-percent RevPAR increase.

“The Middle East was the only sub region globally that still saw both occupancy and ADR declines for the first half. Nonetheless, Middle Eastern hotels still achieved the highest ADR (US$201) and RevPAR (US$125) of all the global sub regions”, Randall continued. “As the addition of new supply entering the Middle East hasn’t majorly slowed down over the past 18 months, showing a 10 percent increase year-to-date, the increasing demand (+8 percent YTD) had a harder time flittering through into growing occupancy and ADR growth”.

Highlights among the region’s key markets for June include (year-over-year comparisons, all currency in U.S. dollars):
* With the help of the FIFA World Cup held in South Africa 11 June-11 July 2010, Cape Town, South Africa, and Johannesburg, South Africa, reported large increases in all three performance metrics for the month.
* Cape Town’s occupancy rose 15.9 percent to 57.8 percent, ADR was up 123.9 percent to US$258.21, and RevPAR soared 159.6 percent to US$149.34.
* Johannesburg increased 27.1 percent in occupancy to 80.6 percent, ADR rose 101.9 percent to US$201.09, and RevPAR jumped 156.5 percent to US$162.15.
* Beirut, Lebanon, was the only other key market to report an occupancy increase (+22.6 percent to 69.3 percent).
* Abu Dhabi, United Arab Emirates, reported the largest decreases in all three key performance metrics. The market’s occupancy fell 23.8 percent to 54.9 percent, ADR dropped 29.2 percent to US$157.41, and RevPAR decreased 46.1 percent to US$86.46.