- Makkah hotel performance soars during Ramadan
- Abu Dhabi performance affected by supply growth, Ramadan calendar shift
Hotels in the Middle East reported mixed May 2019 performance results, while hotels in Africa posted declines across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, May 2019 vs. May 2018
• Occupancy: -8.6% to 52.0%
• Average daily rate (ADR): +8.9% to US$164.87
• Revenue per available room (RevPAR): -0.4% to US$85.75
• Occupancy: -5.6% to 51.2%
• Average daily rate (ADR): -0.4% to US$99.30
• Revenue per available room (RevPAR): -5.9% to US$50.82
Local currency, May 2019 vs. May 2018
• Occupancy: +30.5% to 77.2%
• ADR: +67.6% to SAR1,446.79
• RevPAR: +118.7% to SAR1,116.61
The absolute values in each of the three key performance metrics were the highest for any May in STR’s Makkah database. STR analysts note that performance in the holy city was helped by Ramadan, as the number Umrah pilgrims continues to rise. Year-over-year comparisons were boosted even further by a favorable calendar shift—more Ramadan dates fell in May of this year than May 2018.
• Occupancy: -14.9% to 52.2%
• ADR: -4.4% to AED335.39
• RevPAR: -18.6% to AED175.10
STR analysts attribute the performance declines to supply growth and the negative side of the Ramadan calendar shift. The market sees less business during the holy month, and while a majority of hotels ran special Ramadan offers to help stimulate demand, the number of rooms sold in the market fell 10.3% year over year. Supply, however, jumped 5.3%.
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