Hotels in MENA region report marginal growth

8th February 2012 (Last Updated February 8th, 2012 18:30)

Hotels in the Middle East and North Africa (MENA) region's key cities have reported mixed fortunes in 2011, with Dubai and the Saudi capital Riyadh leading the pack, according to the latest HotStats survey by TRI Hospitality Consulting.

Hotels in the Middle East and North Africa (MENA) region’s key cities have reported mixed fortunes in 2011, with Dubai and the Saudi capital Riyadh leading the pack, according to the latest HotStats survey by TRI Hospitality Consulting.

Hotels in Riyadh showed marginal growth in occupancy by 1.2% while the average room rate (ARR) fell by 3% in December 2011, compared with the same period a year ago.

For the full year 2011, Riyadh hotels posted the highest ARR of $261.89, the lowest payroll levels of 17.6% and the highest gross operating profit per available room (GOPPAR) among the six cities surveyed by HotStats.

Full-year occupancy stood at 60.4% which, despite being the lowest amongst the four GCC cities surveyed, managed to post growth of 4.6% during the year, zawya.com reported.

Occupancy in Jeddah fell by 3.2% in December to 67.2%, ARR increased to 5.8%, GOPPAR levels declined by 13.7% and occupancy for the full year stood at 74.3%.

According to the report, occupancy in Egypt also declined by 37.1% to 36.3% in December compared with the previous year, although ARR levels have held up despite recent turmoil, dropping by 4.4%.

Full-year occupancy stood at 38.3%, while total revenue per available room (TRevPAR) and GOPPAR declined by 39.8% and 56.1% compared to 2010.

Sharm El Sheikh occupancy during December was 52% and for the full year of 2011 it stood at 54.9%, 31.1% lower than the previous year.

The city also posted declines in ARR by 19.3%, RevPAR by 48.5%, TRevPAR by 44.6% and GOPPAR by 64.2%, the largest declines of the six cities surveyed in 2011.

Dubai’s hotel occupancy levels in December increased slightly to 85.1% compared to the same period last year, while ARR increased by 12.4%, RevPAR by 12.7% and GOPPAR by 6.4%.

Full-year occupancy stood at 81.8% with an ARR rise of 7.6% and GOPPAR rise of 5.4%.

Hotels in Abu Dhabi reported a 2.4% rise in occupancy during December compared to the previous year, closing the month at 70.8%, but ARR dropped 23.5% below December 2010.

City-wide RevPAR for the month declined by 20.7%, while GOPPAR was lower by 24.9%.

For the full year, occupancy in Abu Dhabi hotels increased by 70.2% compared to 62.4% in 2010.