Posted on February 01, 2015

Commenting on the survey, Yousef Wahbah, MENA Head of Transaction Real Estate at EY said: The MENA region’s hospitality industry witnessed significant growth across key performance indicators (KPI’s) in November 2014, as the market continued to enter the region’s peak winter and tourism season.

Dubai’s hospitality market saw a slight drop in RevPAR performance when compared to November 2013. Despite new hotels continually opening, occupancy dropped slightly by 1.4% in November 2014 compared to the same period last year. Hotels across Dubai also recorded a decrease in RevPAR from US$287 in November 2013 to US$265 this year due to this drop in occupancy.

Abu Dhabi’s hospitality market witnessed an increase in market performance in November 2014, with an increase in RevPAR of 3.4% compared to November 2013. This was largely due to the increase in ADR from US$262 in November 2013 to US$273 in November 2014. This can be attributed to the number of tourists in the city attending the 2014 Formula 1 Grand Prix and the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) that take place annually.

In the wider MENA region, the hospitality markets in Cairo, Beirut, Manama, Riyadh and Doha witnessed positive increases in November 2014.

Cairo’s hospitality market continued to see strong growth, with average occupancy increasing from 24.0% in November 2013 to 40.0% in November 2014. The increase in occupancy was coupled with a jump in ADR from US$70 in November 2013 to US$95 in November 2014, resulting in a rise in RevPAR by 117.0% in November 2014 when compared to November 2013. These increases can be attributed to the ongoing efforts from the government in recuperating tourism in Egypt, with Egyptian ambassadors worldwide cooperating with officials and media to promote enhanced tourism.

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In Beirut, the hospitality market continued its positive trend, with average occupancy increasing from 47.0% in November 2013 to 51.0% in November 2014. ADR also dropped from US$163 in November 2013 to US$160 in November 2014. In November 2014, Manama’s hospitality market witnessed an increase in occupancy from 47.0% in November 2013 to 57.0% in November 2014. The increase in occupancy was attributed to the Jewelry Arabia event, the only international trade show dedicated to fashion jewelry and one of the largest and most prestigious jewelry exhibitions in the region.

In Riyadh, overall occupancy rates increased significantly from 51.0% in November 2013 to 80.0% in November 2014, an increase of 29.0%. Riyadh also saw a considerable increase in RevPAR, by 53.5%. Doha’s hospitality market also saw increases in November 2014, with overall occupancy reaching 82.0%, an increase of 7.0% compared with November 2013. In addition, Doha’s RevPAR also increased significantly, by 23.2%. The MENA region’s hospitality market continued to strengthen in November 2014 as we entered the peak season for the industry. The winter months consistently attract an increased number of tourists and there is routinely a spike in events and conferences hosted regionally, often due to more favorable weather. We can predict this growth to continue as we move into 2015.

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