HOTELS
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.