Sliding occupancy rates drive RevPAR down across MENA region

MIDDLE EAST AND AFRICA Political changes and demonstrations across parts of Northern Africa and the Middle East continue to negatively influence hotel performance, with lower occupancy driving down RevPAR.

The region ended May with a 12.5% decrease in occupancy to 53.7%, and while ADR actually rose 8.5 % to US$151.96, RevPAR ended the month down 5.1% to US$81.53, according to STR Global data.

Abu Dhabi reported the largest occupancy increase among key markets in the region for May, rising 17.4% to 64.2%, followed by Riyadh, with an 8.4% increase to 73.5%. Cairo’s occupancy dropped 47.6% to 34.4%, reporting the largest decrease in that metric, followed by Amman, with a 19.4% drop to 57.2%.

Two markets experienced ADR increases of more than 10%: Cape Town (17.6% to US$135.28) and Riyadh (11.3% to US$284.93). Abu Dhabi posted the largest ADR decrease of the key markets, registering a 22.3% drop to US$145.27, followed by Amman (11% to US$143.24) and Beirut (10.9% to US$189.79).

Two markets experienced double-digit RevPAR increases: Riyadh (20.6% to US$209.43) and Cape Town (17.8% to US$59.50). Four markets reported RevPAR decreases of more than 20%: Cairo (49.3% to US$40.06), Amman (28.3% to US$81.93), Beirut (26.6% to US$108.07) and Muscat (22% to US$79.14).