STR: Middle East and Africa hotel performance for September 2018
Beirut performance down in comparison with strong 2017 - Riyadh hotels benefit from active month for International Convention & Exhibition Center
Hotels in the Middle East reported September 2018 performance declines, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, September 2018 vs. September 2017
- Occupancy: -7.0% to 59.8%
- Average daily rate (ADR): -18.0% to US$124.49
- Revenue per available room (RevPAR): -23.7% to US$74.47
- Occupancy: +3.9% to 65.0%
- Average daily rate (ADR): +6.4% to US$107.96
- Revenue per available room (RevPAR): +10.6% to US$70.21
Local currency, September 2018 vs. September 2017
- Occupancy: -6.7% to 66.6%
- ADR: -6.8% to LBP224,065.02
- RevPAR: -13.0% to LBP149,146.78
Beirut's declines were largely attributable to high performance levels last September, according to STR analysts. Performance growth was well-pronounced during most of the months of 2017 due to a stabilized political climate and a boost in tourism. Despite the year-over-year performance decrease, Beirut's absolute occupancy level was the second-highest for a September in the market over the last seven years. Only September 2017 (71.3%) was higher during that time.
Riyadh, Saudi Arabia
- Occupancy: +26.7% to 56.3%
- ADR: -8.7% to SAR599.84
- RevPAR: +15.7% to SAR337.45
STR analysts attribute a 33.4% jump in demand (room nights sold) to four events hosted at the Riyadh International Convention & Exhibition Center. The 56.3% absolute occupancy level was the highest for any September in the market since 2014. The highest occupancy night came on 25 September (78.5%), which was the first day of the SFDA Annual Conference & Exhibition. The decline in monthly ADR was likely due to continued significant supply growth (+5.8% year to date).
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.