Hotels in the Middle East reported negative January 2019 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, January 2019 vs. January 2018
• Occupancy: -0.9% to 68.2%
• Average daily rate (ADR): -8.9% to US$154.18
• Revenue per available room (RevPAR): -9.6% to US$105.16
• Occupancy: +0.3% to 53.4%
• Average daily rate (ADR): +2.1% to US$120.06
• Revenue per available room (RevPAR): +2.4% to US$64.06
Local currency, January 2019 vs. January 2018
• Occupancy: +1.9% to 78.0%
• ADR: +5.4% to AED449.72
• RevPAR: +7.5% to AED350.88
Even with supply growth of 11.2%, Abu Dhabi achieved its highest January occupancy since 2008. STR analysts credit a 13.4% spike in demand to the Asian Cup football championship.
• Occupancy: -5.0% to 82.0%
• ADR: -10.9% to AED716.78
• RevPAR: -15.3% to AED587.70
According to STR analysts, occupancy and rate declines are to be expected for the market with a significant amount of new inventory in the pipeline ahead of Expo 2020. As of January, Dubai showed 170 projects in construction accounting for 48,759 rooms. At the same time, demand (room nights sold) grew for the fourth consecutive month, and overall performance was solid during the first five days of the month thanks to New Year’s celebrations as well as Arabplast international trade exhibition.
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