Hotels in the Middle East reported negative April 2018 performance

Hotels in the Middle East reported negative April 2018 performance
Makkah has seen significant supply growth.
Published: 10 June 2018 - 2:56 a.m.
By: Hotelier Middle East Staff

According to STR's Middle East/Africa hotel data for April 2018, hotels in the Middle East reported negative April 2018 performance results, while hotels in Africa posted growth across the three key performance metrics.

Hotels in the Middle East reported occupancy fell 4.4% to 72% in April 2018, while ADR dropped 8.1% to $160.37 and RevPAR decreased 12.1% to $115.45.

Focusing on Makkah in Saudi Arabia, the data revealed that occupancy in the month of April 2018 showed a 12.2% decrease to 66.4%, while ADR also fell by 17.9% to SAR 387.12 (US$103). STR analysts noted in the release that the absolute occupancy level was the lowest for an April since 2010, while absolute ADR was the lowest for the month since 2007. Meanwhile, RevPAR showed a decrease of 27.9% to SAR 257.23 ($68.5). The significant supply growth (an increase of 6.2%) has been the main driver of negative performance in the market. Until a 6.7% demand decrease in April, the market had reported four consecutive months of demand growth.

However, in Africa, hotel occupancy for the month rose 6.3% to 61.8%, ADR increased 4% to $119.79 and RevPAR jumped 10.5% to $73.99.

Focusing on Tunisia, occupancy rose by 7.7% to 53.8%, ADR showed an increase of 17.2% to TND 170.73 ($65.5), with RevPAR also jumping 26.2% to TND 91.91 ($35). A 1.3% increase in supply is the highest for any month in Tunisia since November 2007. At the same time, the absolute ADR and RevPAR levels were the highest for any April on record in the country. The occupancy level was the highest for an April since 2009. STR analysts credit the boost in performance to increased tourism in the market.

 


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