MENA HO­TEL FORE­CASTS

NOVEM­BER 2018 — JAN­UARY 2019, THREE-MONTH ROLLING FORE­CAST HIGH­LIGHTS

Hotelier Middle East - - HOTE FORECAST -

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

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.