• Monthly report forecasts the performance of 29 submarkets across the region
  • Cario and Sharm Al Sheikh anticipated to be strongest performers Q1 2015

Colliers International, a global leader in real estate advisory, today launched the inaugural MENA Hotel Market Forecast which points to the significant opportunities for the hospitality market in Cairo and Sharm Al Sheikh. The report sites rising popularity of Sharm Al Sheikh with European visitors and socio-political stability in Cairo as key drivers of growth.

The forecast, which is the first of its kind for the industry in the region, provides 3 month rolling and year-end hotel performance forecasts for key performance indicators including: hotel occupancy, Average Daily Rate (ADR) and Revenue per Available Room (RevPAR). Spanning 29 submarkets across the Middle East and North Africa, the forecast is compiled using actual operating data from a sample of 3, 4 and 5 star hotels and quality serviced apartments, in addition to historical data trends, rolling averages and anticipated events.

Commenting on the launch, Filippo Sona, Director, Head of Hotels at Colliers International said: "Investors and industry stakeholders are continually looking to understand the powerful factors shaping the MENA hospitality market. The forecast will provide industry professionals with a basis for budgeting and pricing strategies as the sector undergoes significant development, including the delivery of properties scheduled to come online in the mid to long-term. Colliers International has conducted valuations of 32-35,000 keys and asset management of 7800 keys in the region, this has provided us with a unique insight into what lies ahead for this dynamic sector."

— Source: Colliers— Source: Colliers
— Source: Colliers

While the forecast for January highlights the reemergence of Egypt as a regional powerhouse in the hospitality sector, with an anticipated 35% and 97% growth in RevPAR in Cairo and Sharm Al Sheikh respectively, Fujairah and Sheikh Zayed Road, Dubai are the two submarkets that are anticipated to feel most pressure on RevPAR in the coming months.

"Whereas growth in the top two markets of Sharm Al Sheikh and Cairo is driven by demand factors, the amount of supply scheduled to come online is the key factor shaping the outlook for Fujairah and Sheikh Zayed Road, Dubai," concluded Sona.

About Colliers 

Colliers is a global diversified professional services and investment management company. Operating through three industry-leading platforms – Real Estate Services, Engineering, and Investment Management – we have a proven business model, an enterprising culture, and a unique partnership philosophy that drives growth and value creation. For 30 years, Colliers has consistently delivered approximately 20% compound annual returns for shareholders, fueled by visionary leadership, significant inside ownership and substantial recurring earnings. With $5.5 billion in annual revenues, a team of 24,000 professionals, and $108 billion in assets under management, Colliers remains committed to accelerating the success of our clients, investors, and people worldwide. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

Filippo Sona
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Colliers

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