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05. Juli 2012 
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MENA Hotel Market: Jeddah hotels achieve record occupancy
Hotels in Jeddah experienced a 9.0 percentage point growth in occupancy during the month of May, according to the latest HotStats survey of full service hotels in six MENA cities by TRI Hospitality Consulting.
Average occupancy at four and five star chain hotels in the city reached 82.9% with Average Room Rates (ARR) increasing 11.8% to US$220.15 during the month, compared to the same period last year. Revenue Per Available Room (RevPAR) for the month surged 25.5% to US$182.58 leading to strong growth in profits in terms of Gross Operating Profit Per Available Room (GOPPAR), increasing by 29.7% to $142.51.
“Jeddah hotels continue to experience increasing demand with occupancy levels reaching their highest point in the past 36 months, providing Jeddah’s hoteliers with an opportunity to increase average rates and improve overall yields. The strengthening of average rates, occupancies and RevPAR has funnelled directly through to the profitability of the hotels with the GOPPAR increasing by 29.7%” commented Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
Riyadh hotels witnessed a decline in occupancy, achieving 67.3% occupancy in May, 3.3 percentage points lower than the same month last year. Despite a drop in ARR by 4.6 percent to $255.33, Riyadh has reported the highest ARR out of the six cities surveyed. However the reduction in Total Revenue Per Available Room (TRevPAR) by 4.2 percent directly impacted profitability with the GOPPAR falling by 8.9% to $164.84.
“The drop in occupancy levels of hotels in Riyadh for May indicates the start of the annual summer slowdown when corporate activity reduces before the summer holidays. Historically occupancy levels fall to levels below 40 percent during the summer months as corporate demand falls or shifts to Jeddah as a result of the relocation of the King’s Court. We anticipate a further reduction in rates in Riyadh in the coming months as hotels try to capture the remaining demand and maintain profitability” said Goddard.
In Egypt, hotels in Sharm El Sheikh experienced double digit growth in occupancy in May, achieving 62.2% during the month, 21.1 percentage points above the same month last year. However, ARR remained stagnant albeit with a marginal fall of 0.9 percent to $42.09. A greater control over expenses, particularly payroll, has resulted in a 184.7% increase in GOPPAR to $16.91 up from $5.94 in the same month last year.
Average occupancy at four and five star chain hotels in the city reached 82.9% with Average Room Rates (ARR) increasing 11.8% to US$220.15 during the month, compared to the same period last year. Revenue Per Available Room (RevPAR) for the month surged 25.5% to US$182.58 leading to strong growth in profits in terms of Gross Operating Profit Per Available Room (GOPPAR), increasing by 29.7% to $142.51.
“Jeddah hotels continue to experience increasing demand with occupancy levels reaching their highest point in the past 36 months, providing Jeddah’s hoteliers with an opportunity to increase average rates and improve overall yields. The strengthening of average rates, occupancies and RevPAR has funnelled directly through to the profitability of the hotels with the GOPPAR increasing by 29.7%” commented Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.
Riyadh hotels witnessed a decline in occupancy, achieving 67.3% occupancy in May, 3.3 percentage points lower than the same month last year. Despite a drop in ARR by 4.6 percent to $255.33, Riyadh has reported the highest ARR out of the six cities surveyed. However the reduction in Total Revenue Per Available Room (TRevPAR) by 4.2 percent directly impacted profitability with the GOPPAR falling by 8.9% to $164.84.
“The drop in occupancy levels of hotels in Riyadh for May indicates the start of the annual summer slowdown when corporate activity reduces before the summer holidays. Historically occupancy levels fall to levels below 40 percent during the summer months as corporate demand falls or shifts to Jeddah as a result of the relocation of the King’s Court. We anticipate a further reduction in rates in Riyadh in the coming months as hotels try to capture the remaining demand and maintain profitability” said Goddard.
In Egypt, hotels in Sharm El Sheikh experienced double digit growth in occupancy in May, achieving 62.2% during the month, 21.1 percentage points above the same month last year. However, ARR remained stagnant albeit with a marginal fall of 0.9 percent to $42.09. A greater control over expenses, particularly payroll, has resulted in a 184.7% increase in GOPPAR to $16.91 up from $5.94 in the same month last year.
