MENA HOTEL FORECASTS
NOVEMBER 2018 — JANUARY 2019, THREE-MONTH ROLLING FORECAST HIGHLIGHTS
Forecasts for Egyptian markets such as Cairo, Hurghada, Sharm El Sheikh and Alexandria continues to be strong. REVPAR growth is driven by both ADR and occupancy due to strong corporate, leisure and MICE activity. The Red
Sea resorts continue to benefit from positive security perceptions and return of chartered flights. Major Egyptian markets are forecasted to see an average REVPAR growth of 29% for the period of November 2018 to January 2019 in comparison to the same period last year.
Amongst the Saudi markets, hotels in Jeddah have achieved higher performance levels compared to last year, mostly driven by the ADR. REVPAR for Jeddah is forecasted to grow by 6%. Madinah and Riyadh markets are expected to achieve relatively similar performance levels for the period of November 2018 to January 2019 in comparison to the same period last year. Although the market in Al Khobar has seen an increased occupancy levels, a combination of new supply and rate compression is resulting in a dip in REVPAR.
Limited corporate and MICE activity and subdued leisure demand continues to negatively impact REVPAR and ADR in Manama. Kuwait hotel market has experienced higher REVPAR levels within the first ten months of 2018 compared to the same period last year, mostly driven by increase in ADR. The market is forecasted to see a REVPAR growth of 2% for the period of November 2018 to January 2019 in comparison to the same period last year.
Christopher Lund, Colliers International MENA, head of hotels