Mixed results for MENA hospitality industry

The MENA hospitality industry experienced mixed results in April 2017 as higher occupancies yet lower average room rates affected the overall revenue per average room (RevPAR).

Dubai experienced an increase across all KPIs, including the highest RevPAR of $273, an increase of 18.7 per cent when compared to last year. Dubai also saw the highest occupancy in April at 88 per cent and the highest average room rate of $310. Numerous events such as the Arabian Travel Market and the Arabian Hotel Investment conference attracted visitors from across the MENA region and may have helped boost the city’s hotel performance.

Abu Dhabi’s hospitality market witnessed a drop in RevPAR by 4.8 per cent in April 2017, which can be attributed to the drop in ADR from $133 in April 2016 to US$120 in April 2017. However, occupancy increased by 4.5 per cent in April 2017 when compared to the same month last year.

Elsewhere in the GCC, Doha’s hospitality market witnessed an increase in average occupancy from 65.6 per cent in April 2016 to 74 per cent in April 2017. However, the city’s ADR dropped by 7.3 per cent in April 2017 when compared to the same time last year. The increase in Doha’s hospitality market could be a result of Qatar Airways’ new offer for transit travelers who are eligible for a free one-night hotel stay if they choose to layover.

In Muscat, the hospitality market witnessed an increase in average occupancy of 7.7 per cent when compared to the same period last year. This may be a result of the spring break and Easter holidays where expats from neighbouring countries considered the city to be an ideal short getaway.

In Saudi Arabia, Riyadh’s hospitality market continues to witness an overall drop in performance month over month. RevPAR dropped from $130 in April 2016 to $106 in April 2017. This can be attributed to the drop in ADR by 10.9 per cent in April 2017, coupled by a decrease in average occupancy of 5.8 per cent when compared to the same time last year.