Industry Update
Performance21 December 2018

STR: Middle East and Africa hotel performance for November 2018

- Dar es Salaam occupancy drops amid significant supply growth - Sharm el-Sheikh demand continues to grow with tourism recovery

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Smith Travel Research

Hotels in the Middle East reported mixed November 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, November 2018 vs. November 2017

Middle East

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  • Occupancy: +0.9% to 69.8%
  • Average daily rate (ADR): -7.7% to US$156.81
  • Revenue per available room (RevPAR): -6.9% to US$109.42

Africa

  • Occupancy: +5.8% to 68.0%
  • Average daily rate (ADR): +7.0% to US$119.59
  • Revenue per available room (RevPAR): +13.2% to US$81.31

Local currency, November 2018 vs. November 2017

Dar es Salaam, Tanzania

  • Occupancy: -16.7% to 53.2%
  • ADR: -1.8% to TZS251,655.28
  • RevPAR: -18.2% to TZS133,940.60

STR analysts note that supply has grown 6.0% year over year for two consecutive months in Dar es Salaam. Prior to that jump, supply had remained nearly flat since early 2016. Despite the overall drop in occupancy, the market saw five nights with occupancy above 70%, thanks in part to the 21st AutoExpo (13-15 November). According to the HVS Hotel Valuation Index, demand has been sluggish in the market due to a cut in government conferences and increased taxes. Additionally, direct flights to Zanzibar from neighboring countries may also be a factor for a decline in overnight leisure demand in Dar Es Salaam.

Sharm el-Sheikh, Egypt

  • Occupancy: +23.0% to 62.8%
  • ADR: +28.8% to EGP1,165.39
  • RevPAR: +58.4% to EGP731.65

STR analysts point to a 23.0% November increase in demand (room nights sold) and a 22.6% increase in demand through the first 11 months of the year as further evidence of tourism recovery in the market. At the same time, a lack of supply growth has helped in hoteliers' pricing confidence.

About STR

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. For more information, please visit str.com.

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