JLL's Hotels & Hospitality Group has released its 2015 Middle East Hotel Intelligence Reports today for the key markets of Dubai, Abu Dhabi, Doha, Jeddah and Riyadh at the Arabian Hotel Investment Conference (AHIC) in Dubai.
This publication has been prepared by Colliers International Hotels MENA, providing hotel performance forecasts for 29 submarkets in key MENA hospitality markets. Key Performance Indicators include Hotel occupancy %, calculated as occupied room nights / available room nights, Average Daily Rate (ADR), calculated as total rooms revenue / occupied room nights, Revenue per Available Room (RevPAR), calculated as total rooms revenue / available room nights.
Four and five star hotels in Dubai saw average room rates (ARR) fall by 5.5% to US$380.85 in March, according to the latest data from HotStats. Occupancy levels remained stable during the month at 88.8%, however the reduction in ARR had a flow-on effect on revenue per available room (RevPAR) which fell by 4.8% to US$338.25. A reduction in food and beverage revenues further reduced total revenue per available room (TRevPAR) which dropped by 8.9%. Although operational expenses were marginally reduced, the lower overall revenues resulted in gross operating profit per available room (GOPPAR) falling by 7.8% to US$306.62.
Dubai and Abu Dhabi experienced contrasting results for the month of January as gross operating profit per available room (GOPPAR) fell by 7.4% to US$281.79 in Dubai, whilst Abu Dhabi saw GOPPAR levels increase by 1.2% to US$88.38, according to the latest data from HotStats.
Dubai's four and five star hotels maintained strong performance levels during the month of December with revenue per available room (RevPAR) increasing by 2.2% to US$308.26. The growth in rooms revenue was driven by a marginal growth in average room rate (ARR) which rose by 0.4% to US$375.11, coupled with a 1.4 percentage point increase in occupancy to 82.2%. Higher F&B and conferencing revenues drove a 3.5% increase in total revenue per available room (TRevPAR) to US$573.30 and supported profitability, as gross operating profit per available room (GOPPAR) increased by 4.0% to US$286.33.
Colliers International, a global leader in real estate advisory, today launched the inaugural MENA Hotel Market Forecast which points to the significant opportunities for the hospitality market in Cairo and Sharm Al Sheikh. The report sites rising popularity of Sharm Al Sheikh with European visitors and socio-political stability in Cairo as key drivers of growth.
Hotels in Dubai have reported weakening performance trends, as revenues per available room (RevPAR) declined by 6.6% to US$ 340.06 for the month of November compared to the same period last year, according to the latest HotStats data. The contraction in room revenues was due to a softening of occupancies which retracted by 1.1 percentage points to 86.7%, but led largely by a decline in average room rates (ARR) of 5.5% to US$ 392.37. The drop in room revenues also caused a decline in total revenues per available room (TRevPAR) by 2.3% to US$ 602.70, but was compensated in some part by an increase in food and beverage revenues that rose by 4.8% for the period. Profitability levels were under pressure as some key cost items such as payroll and sales and marketing inched higher for the period, causing gross operating profit per available room (GOPPAR) to contract by 4.3% to US$ 316.36.
The relative stability experienced in Manama during recent months has allowed hoteliers to record a strong growth in revenues for the month of October compared to the same period last year, according to the latest data from HotStats.
The recovery of the Abu Dhabi hotel market continues to gain momentum with four and five star hotels reporting positive gains in performance levels for the month of September compared to the same period last year. Average room rate (ARR) increased by 4.2% to US$128.96 while occupancy grew by 6.6 percentage points to 76.6%, resulting in revenue per available room (RevPAR) rising 14.0% to US$98.76. Total revenue per available room (TRevPAR) was impacted by decline in beverage revenues of 5.3%, however the strong room performance led to a 9.4% increase over the same period last year to US$219.13. The growth in RevPAR directly impacted gross operating profit per available room (GOPPAR) which increased by 42.4% to US$47.73.
Hotels in Cairo encouraged by strong performance results in July benefitted from a surge in hotel demand as occupancy levels increased by more than 41 percentage points to 62.0% in August, according to the latest HotStats survey of full service four and five star hotels by TRI Consulting.
Hotels in Israel have shown encouraging growth in performance over the past year, albeit that the recent tension and conflict the region has been experiencing will have a profound effect on this year's performance.
The Dubai hotel market saw occupancy levels fall to 50.3 percent in July as overall demand within the city reduced due the summer heat and impact of Ramadan, according to the latest HotStats survey of full service four and five star hotels by TRI Consulting.
Abu Dhabi’s Hotel price index (HPI) decreased from 90.6 in May 2014 to 80.1 in June 2014, a decrease of 11.5 per cent, according to Statistics Centre- Abu Dhabi (SCAD). In its report, which provides an analysis of the hotel establishments price index during the month of June 2014 compared with May 2014 and the same period of 2013, SCAD said the HPI decreased by 3.8 per cent year-on-year, from 83.3 in June 2013 to 80.1 in June 2014.
The Abu Dhabi hotel market continued to grow from strength to strength, as strong top-line performance elevated profitability levels in the first six months of 2014, according to the latest HotStats survey of full service hotels in five MENA cities commented on by TRI Hospitality Consulting Middle East.
After record occupancy levels in the first five months of the year, hotels in Abu Dhabi are expecting a bit lower occupancy in holy month of Ramadan. The number of hotel guests checking into Abu Dhabi’s 155 hotels and hotel apartments reached a five-month high from January to May this year with occupancy touching 78 per cent — an eight per cent lift on the same period in 2013.
Hotels in Abu Dhabi maintained robust performance throughout the month of April, as occupancy saw the highest growth amongst the five cities observed in the MENA region, according to the latest data from HotStats and commented by TRI Hospitality Consulting Middle East.
Hotels in Dubai enjoy some of the highest occupancy rates in the world. Tourists flock from around the region and afar to bask in the emirate’s winter sun, lie on its beaches and attend its glitzy events.
Hotels in Abu Dhabi posted double digit growth in Revenue Per Available Room (RevPAR) in January on the back of strong growth in occupancy levels and Average Room Rates (ARR), according to the latest HotStats survey of full-service hotels in five MENA cities by TRI Hospitality Consulting.
Following on from the success of the previous 12 issues of the EMEA Hotels Monitor, we would like to welcome you to Issue 13. The aim of the Hotels Monitor is to provide our clients and contacts with a quick reference booklet listing those vital statistics which reflect the relative health of our exciting industry across the EMEA region. The monitor incorporates hotel performance statistics from STR Global, an up to date guide on development costs from Rider Levett Bucknall and a selection of interesting deals transacted in the previous six months, courtesy of Whitebridge Hospitality. For this edition's back-page feature we have invited ISG to pen a brief article on the ticking time bomb that is capex and the need to refurbish older properties in the Middle East in order to maintain performance levels.
One of the key strengths of the Serviced Apartment Business Model is its versatility, hence being able to change the target market profile between long and short stay to suit market conditions in order to achieve revenue maximization. Brand Strength is a strong driver of serviced apartment demand with GDS, Direct Bookings, and Hotel Website bookings accounting for 40% of total bookings. A strong brand with a regional presence and strong online capabilities is essential to help and drive sales in all three markets (UAE, KSA, Qatar).