Negative Results for Hotel Industry in the Middle East for November 2017 - African Hoteliers Report Growth
Hotels in the Middle East reported negative performance results during November 2017, while hotels in Africa posted growth across the three key performance indicators, according to data from STR.
U.S. dollar constant currency, November 2017 vs. November 2016
- Occupancy: -1.8% to 69.6%
- Average daily rate (ADR): -4.6% to US$171.10
- Revenue per available room (RevPAR): -6.3% to US$119.01
STR analysts note that consistent declines in RevPAR over the past two years correlates with the drop in oil prices. Qatar, Bahrain and Saudi Arabia have experienced the steepest performance decreases in 2017, and all have been significantly affected by reduced corporate business.
- Occupancy: +8.7% to 64.3%
- Average daily rate (ADR): +0.9% to US$106.73
- Revenue per available room (RevPAR): +9.7% to US$68.66
Northern Africa drove demand and occupancy growth for the region, with increases of 26.0% and 25.2%, respectively. Egypt helped that performance with continued high occupancy growth (+39.3%). ADR decreased in Northern Africa (-4.0%), which was in part due to decreases in Morocco (-8.5%) and Tunisia (-2.0%).
ADR in the Southern Africa region grew 4.7%, pushing RevPAR up 4.9%. While occupancy only grew 0.1%, the 68.6% absolute occupancy is the region’s highest occupancy for a November since 2008.
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