Hotels in the Middle East Report Mixed Results for Q1 2018
Egypt posts best Q1 occupancy since 2010 - South Africa off to slow start in 2018; water crisis affects Cape Town performance - United Arab Emirates registers higher occupancy, lower rates
STR analysts note that occupancy levels have been declining significantly over the past two years due to supply growth. With room rates dropping as well, RevPAR has now decreased in the first quarter of each of the past three years.
The positive start to the year for hotels in the Middle East & Africa was short lived as profit per room fell by 7.8% in February, led by a significant year-on-year decline in achieved average room rate, according to the latest worldwide poll of full-service hotels from HotStats.
In 2008, Chinese visiting the Africa Continent accounted for 3% of their total numbers in outbound travel. But in 2017, outbound travel rose to over 10%, representing 11.3 million that had travelled to Africa. As highlighted by Chinese news website Cankaoxiaoxi.com, Chinas social media platforms have been abuzz about travel experience to African countries.
Hotels in the Middle East reported occupancy fell 0.7% to 70.5% during February 2018, ADR decreased 7.3% to $161.96 and RevPAR dropped 7.9% to $114.26. Africa's hotels reported occupancy increased 3.8% to 61% during the month, while ADR increased 7.3% to $125.04 and RevPAR jumped 11.4% to $76.26.