According to the latest data compiled by STR Global, hotels in the Middle East and Africa reported negative results in the three key performance metrics when reported in U.S. dollars.
Compared to October 2014, the Middle East subcontinent reported a 4.6% decrease in occupancy to 67.4%, a 12.3% drop in average daily rate to $200.66 and a 16.3% decline in revenue per available room to $135.24.
The Northern Africa and Southern Africa subcontinents experienced a 0.3% decline in occupancy to 62.3%, a 4.9% drop in ADR to $111.85 and a 4.6% decrease in RevPAR to $69.70.
Y-o-Y Performance of featured countries for October 2015
Egypt reported decreases across the three key performance metrics: occupancy (-2.9% to 59.2%), ADR (-2.9% to EGP625.72) and RevPAR (-5.7% to EGP370.48). Absolute occupancy for the month remained comparable to October 2014 as well as September 2015. As the hotel industry in Egypt continues its recovery, year-to-date RevPAR is up 31.2%. However, the 31 October Russian plane crash in the Sinai Peninsula is expected to weaken performance results for November.
Qatar saw a 6.2% decrease in occupancy to 74.1% and a 6.2% decline in RevPAR to QAR515.91. ADR in the country remained flat at QAR695.85. Supply increased by 5.5% for the month—the highest supply growth for any month in Qatar since March 2013. With supply growth above 3.0% for each month since August, occupancy has decreased by at least 5.0% in three straight months.
The United Arab Emirates experienced a 0.7% decrease in occupancy to 78.5% as well as double-digit decreases in ADR (-10.3% to AED753.30) and RevPAR (-10.9% to AED591.31). Supply growth (+5.1%) outpaced demand (+4.4%) for the month, resulting in the slight dip in occupancy. STR Global analysts attribute the drop in ADR to a weak Euro. With a decrease in international arrivals from Europe, hotels have lowered rate in an effort to sustain demand.
Performance of featured markets for October 2015
Beirut, Lebanon, recorded a 9.2% decrease in occupancy to 51.5%, a 6.9% drop in ADR to LBP221,116.01 and a 15.5% decline in RevPAR to LBP113,882.46. STR Global analysts cite security concerns and a high volume of Syrian refugees as reasons for the performance decreases in October.
Dubai, United Arab Emirates, saw occupancy dip 2.5% to 80.0%. The market also reported double-digit decreases in ADR (-11.0% to AED871.96) and RevPAR (-13.2% to AED697.20). The shift of Eid al-Adha from October 2014 to September 2015 negatively affected performance, especially at the beginning of the month. ADR in the market has continued to decline in year-over-year comparisons as the market prices more competitively to try to stimulate the traditional levels of high demand.