Hotels in Jeddah managed to report higher room rates in August despite the market seeing significant supply growth, according to analysts STR.
STR’s preliminary August 2017 data for the Saudi city indicated lower occupancy levels but higher rates.
Based on daily data from August, Jeddah hoteliers reported supply growth of nearly 18 percent against an increase in demand of just 1.7 percent.
Occupancy rates slumped by 13.7 percent to 68.5 percent during August but average daily rates (ADR) rose by 8.2 percent to SR1,240.65.
The data also showed that revenue per available room (RevPAR) in Jeddah fell by 6.6 percent to SR850.30.
STR analysts noted that the year-over-year spike in rooms available (supply) significantly pressured occupancy levels and ultimately RevPAR for the month.