Expert analysis: MENA hotel forecast March 2018 - May 2018

Expert analysis: MENA hotel forecast March 2018 - May 2018
Filippo Sona,Colliers International director, head of hotels (MENA region).
Published: 14 May 2018 - 7:51 a.m.
By: Hotelier Middle East Staff


Quality hotels in Riyadh continue to have high bargaining power during weekdays due to increased corporate and MICE demand. The market is also growing from a low base of last year. The growth in RevPAR driven by occupancy and ADR is expected to continue for the upcoming three months until the Ramadan. The forecast for the next three months is positive and the RevPAR is forecasted to be 20% above last year.


Jeddah’s hospitality market is recovering from a lacklustre performance in 2017. The corporate and MICE activity, albeit still low, is driving up the occupancy levels versus last year, however, ADR continues to be under pressure due to drop in demand and increase in supply. The delays in major infrastructure projects and low public spending is adversely impacting the demand. The annual movement of government to Jeddah close to Ramadan and Haj period is anticipated to increase some demand, based on which the RevPAR for Mar-May-18 is forecasted to be in line with last year.


Egypt’s markets are strongly recovering, and the momentum of growth continues in 2018. Cairo hotels are relying on corporate demand and domestic tourists to drive this recovery with an expected 10% increase in RevPAR forecasted for Mar-May 2018. All-inclusive resorts along the Red Sea are currently switching their RevPAR strategy and have managed to attract demand while keeping the ADR stable. The Sharm El Sheikh and Hurghada markets generate some of the lowest ADRs in MENA. The RevPAR (Mar-May-18) for Sharm El Sheikh and Hurghada are forecasted to be 63% and 17% above last year.


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