Hurghada, Sharm El-Sheikh ex­pect to wit­ness 44% and 40% growth in rev­enues per rooms: Col­liers

Cairo ex­pected to wit­ness higher RevPAR lev­els com­pared to last year

The Daily News Egypt - - News - By Ne­hal Samir

Ho­tel oc­cu­pan­cies in Hurghada and Sharm El-Sheikh con­tinue to grow fol­low­ing the trend of the first three quar­ters of 2018.They are ex­pected to wit­ness 44% and 40% growth in rev­enues per avail­able rooms (RevPAR), Col­liers In­ter­na­tional said in its lat­est MENA Ho­tels Fore­cast re­port re­leased in Oc­to­ber 2018.

The re­port ex­plained that the wit­nessed re­bound is as a re­sult of the im­proved se­cu­rity sit­u­a­tion. Col­liers ex­pects that the Red Sea re­sort will con­tinue to ben­e­fit from the pos­i­tive se­cu­rity per­cep­tion, and the re­turn of char­tered flights.

In Sharm El-Sheikh, “sim­i­lar to Hurghada, travel ad­vi­sories from most source mar­kets are now rel­a­tively re­laxed re­sult­ing in a surge in in­ter­na­tional leisure de­mand,” the re­port noted.

The re­port stated that beach ho­tels in Abu Dhabi and ho­tels in Cairo main­tained their steady per­for­mance, ex­plain­ing that Abu Dhabi beach ho­tels are ex­pected to wit­ness a strong mo­men­tum in oc­cu­pancy, Av­er­age Daily Rates (ADR), and a growth of 3% in RevPAR. Fur­ther, it stated that Cairo is ex­pected to wit­ness growth of 9% in RevPAR.

Col­liers high­lighted that the trend of the strong mo­men­tum in oc­cu­pancy and ADR in Abu Dhabi beach ho­tels is ex­pected to con­tinue in the quar­ter 4 of 2018, mostly driven by the leisure seg­ment.

Con­cern­ing Cairo, the re­port stated that the mar­ket is ex­pected to see higher RevPAR lev­els com­pared to last year due to the sta­ble cor­po­rate, Meet­ings In­cen­tives Con­fer­ences and Events (MICE), and leisure de­mand. The re­port iden­ti­fies strong des­ti­na­tion mar­ket­ing and po­lit­i­cal sta­bil­ity as fur­ther fac­tors for the in­crease in rev­enues per rooms.

On the down­side, the re­port shows that Bahrain’s Manama and the Saudi Ara­bian city Al Kho­bar con­tinue to feel the neg­a­tive con­se­quences of the de­cline in leisure de­mands ,lim­ited cor­po­rate, and MICE de­mand.

Manama and Al Kho­bar are ex­pected to re­spec­tively wit­ness 6% and 4% de­cline in RevPAR dur­ing the pe­riod from Oc­to­ber to De­cem­ber 2018.

Col­liers In­ter­na­tional Ho­tels is a global net­work of con­sul­tants spe­cialised in ho­tel, re­sort, ma­rina, golf, leisure and spa sec­tors. They pro­vide strate­gic ad­vi­sory ser­vices to own­ers, de­vel­op­ers and gov­ern­ment in­sti­tu­tions. The anal­y­sis is based on ac­tual op­er­at­ing data from a sam­ple of 3 to 5 stars ho­tels and qual­ity ser­viced apart­ments. The fore­cast­ing method­ol­ogy is based on rolling av­er­ages, trend es­ti­ma­tion and ex­trap­o­la­tion.

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