STR: Middle East and Africa hotel performance for Q2 2019
Key Q2 takeaways: Casablanca hotel performance down due to supply influx - Continued supply growth pushes Dubai performance to significant lows
LONDON — Hotels in the Middle East reported mixed second-quarter 2019 performance results, while hotels in Africa posted increases across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, Q2 2019 vs. Q2 2018
- Occupancy: +2.6% to 61.7%
- Average daily rate (ADR): -7.2% to US$147.44
- Revenue per available room (RevPAR): -4.8% to US$91.03
- Occupancy: +2.2% to 57.6%
- Average daily rate (ADR): +4.0% to US$106.53
- Revenue per available room (RevPAR): +6.3% to US$61.33
Local currency, May 2019 vs. May 2018
- Occupancy: -7.6% to 58.8%
- ADR: -6.4% to MAD989.65
- RevPAR: -13.5% to MAD582.15
The absolute ADR and RevPAR levels were the lowest for a Q2 in STR's Casablanca database. STR analysts note this is the first Q2 in Casablanca that showed a double-digit increase in supply (+15.0%)—performance levels were negatively affected as a result. When looking at individual months, May showed the market's weakest performance across the three key performance metrics: occupancy (-27.8%), ADR (-12.3%) and RevPAR (-36.7%).
- Occupancy: -0.9% to 67.1%
- ADR: -12.3% to AED513.73
- RevPAR: -13.1% to AED344.65
Supply has now outgrown demand in Dubai for six consecutive quarters. STR analysts note that the occupancy level was the lowest for a Q2 in Dubai since the time of the economic crisis in 2009, while the absolute ADR and RevPAR levels were the lowest since 2003. June was the strongest month of the quarter with a 30.5% increase in demand, which helped monthly performance levels.
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
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