HO­TELS

Hospitality News Middle East - - CONTENTS - Col­liers.com

Beirut

The Beirut ho­tel mar­ket has wit­nessed strong growth in the first half of the year, with the rev­enue per avail­able room (REVPAR) as of year to date (YTD)-MAY 2017 trend­ing 14 per­cent above YTD-MAY 2016. Oc­cu­pancy is the key driver be­hind the REVPAR growth. The oc­cu­pancy rate im­proved fol­low­ing an in­crease in leisure and cor­po­rate ac­tiv­ity in the mar­ket. The sum­mer-month oc­cu­pancy was driven by leisure de­mand from Le­banese di­as­pora, fol­lowed by both leisure and cor­po­rate de­mand from Arab and GCC coun­tries. The se­cu­rity out­look has also been up­graded, which is fur­ther en­hanc­ing de­mand. The trend is an­tic­i­pated to con­tinue for the rest of the year and the REVPAR for full-year 2017 is fore­cast to close 9 per­cent higher than in 2016.

Am­man

The Am­man ho­tel mar­ket wit­nessed a de­cline in both oc­cu­pancy and av­er­age daily rate (ADR), ad­versely af­fect­ing the REVPAR per­for­mance. The REVPAR YTD-MAY 2017 is trend­ing 14 per­cent be­low last year for the same pe­riod. The pres­sure on ADR and prof­itabil­ity will con­tinue, due to ris­ing pay­roll costs and taxes. The drop is due to lim­ited leisure and meet­ings, in­cen­tives, con­fer­ences and ex­hi­bi­tions (MICE) de­mand, mainly caused by ad­verse se­cu­rity per­cep­tion from the wider re­gion. The trend is an­tic­i­pated to con­tinue, with no short­term re­cov­ery in sight.

Riyadh

The Riyadh mar­ket con­tin­ues to suf­fer in both oc­cu­pancy and ADR due to a drop in cor­po­rate and MICE ac­tiv­ity caused by lim­ited pub­lic and pri­vate spend­ing, ow­ing to the drop in oil prices. The REVPAR YTD-MAY 2017 is trend­ing 18 per­cent be­low that of the same time last year. The trend is ex­pected to con­tinue and the 2017 full-year REVPAR is fore­cast to close 16 per­cent be­low 2016 per­for­mance. How­ever, a mid to long-term im­prove­ment in per­for­mance is ex­pected, once the city’s leisure at­trac­tions, such as the Six Flags Theme Parks and mega mall de­vel­op­ments, reach fruition.

Filippo Sona, Di­rec­tor (MENA), Col­liers In­ter­na­tional

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