Middle East hotel results slump into the negative
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Hotels in the Middle East reported negative results, while hotels in Africa recorded mixed results in the three key performance metrics, according to January 2016 data from STR Global.
Compared with January 2015, the Middle East subcontinent reported a 3.8% decrease in occupancy to 70.3%. Average daily rate for the month was down 6.9% to $197.20. Revenue per available room dropped 10.4% to $138.60.
Muscat, Oman, reported an 8.7% decline in occupancy to 63.8%, a 9.4% drop in ADR to OMR80.98 and a 17.3% decrease in RevPAR to OMR51.68. Supply growth (+2.0%) outweighed demand performance (-6.9%) for the month, creating a slower-than-usual start to the year in Muscat.
Sharm el-Sheikh, Egypt, reported double-digit decreases across the three key performance indicators: occupancy (-54.7% to 24.8%), ADR (-18.9% to EGP406.16) and RevPAR (-63.3% to EGP100.92).
Hoteliers cut prices in the market, but the decline in occupancy was too great to overcome.
According to STR Global analysts, Sharm el-Sheikh has once again lost its attractiveness due to the October 2015 plane crash in the Sinai Peninsula.
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