Source: HotStats Limited

Four and five star hotels in Riyadh witnessed an increase in performance levels for the month of February compared to the same period last year, according to the latest data from HotStats. A simultaneous increase in occupancy of 6.3 percentage points to 76.9% and average room rate (ARR) of 2.1% to US$252.54, resulted in a double-digit growth in revenue per available room (RevPAR) of 11.2%. However the increase in total revenue per available room (TRevPAR) was partially weighed down by marginal F&B revenues. Nonetheless, a growth in overall revenue helped gross operating profit per available room (GOPPAR) increase by 13.2% to US$163.62.

Conversely, hotels in Jeddah witnessed demand slowing down as occupancy declined by 1.7 percentage points to 77.6% and ARR dropped by a marginal 0.3% to US$251.44. As a consequence, RevPAR depreciated by 2.5% for the period, a trend which was also reflective of year-to-date results. A similar decline witnessed in other revenue streams such as conferencing and F&B further dampened TRevPAR by 3.0% to US$309.07, forcing GOPPAR to contract by 12.3% to US$127.77.

The Manama hotel market experienced downward pressures on RevPAR in February, as occupancy fell 7.3 percentage points to 54.2% and ARR remained stagnant at US$185.56. The 11.6% decline in RevPAR impacted TRevPAR which contracted by 3.6%, although to a lesser degree due to increased F&B demand. As a result of lower top-line revenues, the profitability of Manama hotels fell with GOPPAR contracting by 4.9% to US$57.50.

After a strong period of growth achieved in the previous months, hotels in Sharm El Sheikh also reported a drop in RevPAR of 4.0% to US$19.02 in February. Although ARR increased by 13.1% to US$37.49, it was not sufficient enough to offset a 9.0 percentage point decline in occupancies to 50.7% and subsequent reductions of F&B revenue. The softer overall revenue levels impacted TRevPAR which contracted by 8.7%, resulting in GOPPAR levels falling to US$3.65.

Average room rates surge in Abu Dhabi

 Hoteliers in Abu Dhabi were able to capitalise on higher demand levels in February, as ARR increased by 27.1% to US$206.32, while occupancy levels grew 3.4 percentage points to 84.0%. The significant increase in ARR helped RevPAR grow 32.5% and translated it to a double-digit increase in TRevPAR to US$326.36. The significant increase in ARR in addition to stronger F&B revenues drove a significant growth in bottom-line performance as GOPPAR grew by 43.9% to US$132.91.

About HotStats

HotStats provides monthly P&L benchmarking and market insight for the global hotel industry, collecting monthly detailed financial data from more than 8,500 hotels worldwide and over 100 different brands and independent hotels. HotStats provides more than 550 different KPIs covering all operating revenues, payroll, expenses, cost of sales and departmental and total hotel profitability.

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