Hotel giant InterContinental Hotel Group (IHG) recorded a decline in revenue per available room (RevPAR) in the Middle East in its latest Q3 figures. The company's shares were down 0.9% on Friday.
IHG reported that RevPAR fell 6% in the region compared to 2016. Globally, IHG, which has over 5,000 hotels operating under 12 different brands around the world, reported a 2.3% overall increase in its global RevPAR, along with a 4.1% growth in net rooms in Q3 2017.
The hotel operator cited the ongoing impact of low oil prices, high supply growth and government austerity measures as well as the timing of Ramadan as reasons for the decline.
In the Middle East, IHG will have launched six new hotels by the end of 2017, including two new properties in Saudi Arabia – Staybridge Suites Jeddah Alandalus Mall and a Crowne Plaza in Riyadh.
Regionally, revenue per available room (RevPAR) figures for Dubai hotels have slumped to their lowest level in a decade, according to a new report. JLL’s Q3 2017 Dubai Real Estate Market Overview report said that RevPAR for the first eight months of 2017 has fallen to AED503 (US $136.9).
Related: 83 new hotels to open in the UAE next year