African Hotel occupancy rises as Middle East falls in Second Quarter 2017

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The hotel industry in the Middle East reported nearly flat results during the second quarter of 2017, while hotels in Africa recorded growth across the three key performance metrics, according to data from STR.

Occupancy levels in the Middle East slipped 0.1 per cent to 62.4 per cent and average daily rate (ADR) made a negligible increase of 0.8 per cent to $169.67. Revenue per available room (RevPAR) also increased 0.6 per cent to $105.84.

In Oman, occupancy rates were recorded at 49.6 per cent in Q2, an increase on 10.1 per cent comapred to Q2 of 2016. ADR was up 2.6 per cent to OMR58.3 ($150.9) while RevPAR climbed 13 per cent to OMR28.89 ($74.8).

Despite the double-digit growth in occupancy, the absolute value in the metric was the fourth-lowest for a Q2 in Oman since 2004. STR analysts note that increased occupancy during the Ramadan period compounded by the shift of Eid al-Fitr into Q2 this year contributed to the positive result.

Egypt’s occupancy levels showed significant increase compared to other regions, going up 13.9 per cent to 46.8 per cent. ADR went up significantly, going up 67.2 per cent to EGP1,217.5 ($67.9). Egypt’s RevPAR made the most significant increase, climbing 90.5 per cent to EGP569.54 ($31.8).

The country’s occupancy growth was due primarily to a comparison with a significantly low performance period during Q2 2016 (41.1 per cent). Occupancy levels last year were greatly affected by the May 2016 EgyptAir plane crash and ensuing security concerns. Since the end of 2016, the country has shown signs of recovery with double-digit occupancy increases in six of seven months. According to STR analysts, the spike in the country’s ADR is consistent with high inflation levels.

Occupancy rates in Africa were up 2.7 per cent to 53.3 per cent. With ADR going up 10.5 per cent to $101.2. RevPAR climbed 13.5 per cent to $53.96.

Locally, Tunisia’s occupancy levels showed remarkable improvement, jumping up 31.6 per cent to 48.7 per cent. ADR slipped 11.4 per cent to TND143.94 ($58.9) but RevPAR rose 16.6 per cent to TND70.06 ($28.6).

STR analysts point to Tunisia as another example of significant occupancy growth due to a low comparison level from the previous year. Steep performance declines were consistent during the first half of 2016 due to lingering security concerns in the country, but June 2017 marked 12 consecutive months with double-digit increases in occupancy. Rates have been consistently cheaper during that time. In May, Tunisia Ministry officials stated that bookings for the summer months were rising, especially from Russia.

Source: ttnworldwide.com

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