Is the bloom already off the rose in Qatar? The Gulf Times reported on Thursday that data from Ernst & Young (E&Y) showed during the first five months of 2012 Doha’s hotel rooms’ yield plunged 8% to US$176, occupancy declined 4% (65%) and average room rates was off 1.6% (US$269). This news comes as other Middle East countries showed robust gains.
In May alone, Doha rooms’ yield dropped 10.2% to US$164 on the back of a 5% plunge in occupancy and 3.7% in average room rate to US$266, according to?E&Y’s Middle East Hotel Benchmark Survey.
Conversely, in Saudi Arabia, Madina and Jeddah witnessed double-digit growth, while its capital city, Riyadh, saw shrinking results. Year to date, Madina witnessed a robust 25.1% growth in rooms’ yield to US$118 on a 16% rise in average room rate to US$161 and 5% in occupancy to 73%. In Jeddah, rooms’ yield gained 20.8% to US$184 due to an 8.5% jump in average room rate to US$229 and 8% in occupancy to 80%.
Makkah saw its rooms’ yield gained only 2.9% to US$175 although average room rate fell 4.6% to US$201, but there was a 7% rise in occupancy to 87%. Riyadh, however, saw rooms’ yield fall 3.1% to US$150 due to a 2.3% fall in average room rate to US$232 even as occupancy was flat at 64%.
In the United Arab Emirates, Dubai outshone other emirates such as Abu Dhabi and Al Ain. In Dubai, prospects were lifted more by city hotels and apartments than the beach resorts. The overall rooms’ yield in Dubai grew 12.7% to US$227 on a 7.8% rise in average room rate to US$264 and 3% in occupancy to 85%.
In Abu Dhabi, where rooms’ occupancy was rather flat at 79%, the rooms’ yield plummeted 11.2% to US$163 since there was 11.6% drop in average room rate to US$204.
Kuwait witnessed an 8.8% dip in rooms’ yield to US$149 due to a 2.5% fall in average room rate to US$273 and 4% dip in occupancy to 54%. Oman saw a 1.3% growth in rooms’ yield to US$155 on the back of a 2% gain occupancy to 73%, although average room rate fell 1.6% to US$212. Finally, Bahrain witnessed a big 52.1% increase in rooms’ yield to US$93 mainly due to a 14% jump in occupancy to 39%, although average room rate declined 1.6% to US$232.