MEA region witness dip in occupancy: STR Global

The recent occupancy report by STR Global stated that the Middle East and Africa region reported mixed performance results for July 2013. The region reported a 13.5% decrease in occupancy to 49.0%, a 5.6% increase in average daily rate to US$147.82 and an 8.6% decrease in revenue per available room to US$72.37. 

“Several issues such as Ramadan in July, coupled with ongoing unrest issues in the Middle East and Africa region have had a negative impact on hotel performance,” said Elizabeth Winkle, managing director of STR Global.

“Northern Africa was impacted by recent overthrow of president Morsi and violent clashes between his supporters and opposition in Egypt only achieved 16.6% occupancy rate this month. However, in Africa and Nairobi posted positive results as these markets are not impacted by Ramadan as much as markets in the Middle East. Average occupancy in total for the region is less than 50%. However, overall year-to-date performance in the region is still positive,” added Winkle.

Doha witnessed a +9.5% increase to 48.2% and Nairobi +0.8% to 65.1% which were the only two which showed positive growth for the month. Cairo fell 60.1% in occupancy to 16.6%, posting the largest decrease, Jeddah rose 13.0% in ADR to US$258.81 while Beirut had a -20.2% to US$157.03 , Sandton and surrounding areas had a -11.0% to US$110.37 reported double-digit ADR decreases.

Jeddah had a +6.3% to US$203.68 and Doha +2.5% to US$83.96 experienced RevPAR increases in July. Finally, Cairo fell 62.0% in RevPAR to US$16.68, reporting the largest decrease, followed by Beirut with a 43.5% decrease to US$60.73.