Hotel Industry Performance Middle East And Africa

Negative 2015 Performance Metrics for Hotel Industry in Middle East and Africa for January 2016

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 US$197.20. Revenue per available room dropped 10.4% to US$138.60.

Hotels in the Middle East reported negative results, while hotels in Africa recorded mixed results in the three key performance metrics when reported in U.S. dollar constant currency, 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 US$197.20. Revenue per available room dropped 10.4% to US$138.60.

The Northern Africa and Southern Africa subcontinents experienced a 5.4% decrease in occupancy to 47.9%. However, average daily rate was up 9.4% to US$111.48, and RevPAR increased 3.5% to US$53.41.

Performance of featured countries for January 2016 (local currency, year-over-year comparisons):

South Africa saw a 6.3% increase in occupancy to 57.4% as well as double-digit growth in ADR (+12.2% to ZAR1,254.81) and RevPAR (+19.3% to ZAR719.96). The country’s performance was pushed by solid demand growth (+7.2%) coupled with steady supply (+0.8%).

Tunisia experienced a double-digit decrease in occupancy (-10.0% to 27.8%), but a significant rise in ADR (+22.0% to TND172.24) pushed RevPAR (+9.8% to TND47.96) for the month. Supply (-0.9%) remained fairly steady, but demand (-10.8%) decreased considerably. STR Global analysts believe Tunisia is still struggling to attract tourists after the Sousse attacks in June 2015 and that hoteliers are raising rates to compensate for a loss in demand.

Tanzania reported an 8.2% drop in occupancy to 47.0% but major spikes in ADR (+34.2% to TZS315,869.17) and RevPAR (+23.2% to TZN148,335.46). Rate was the clear driver of RevPAR for the month as occupancy slipped to below 50% for the first time since 2010.

Nigeria saw double-digit declines in occupancy (-14.7% to 40.7%) and RevPAR (-9.5% to NGN17,466.30). ADR in the country grew 6.1% to NGN42,911.30. STR Global analysts note that Nigeria’s economy is dependent on the oil market.

Performance of featured markets for January 2016 (local currency, year-over-year comparisons):

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. 

Casablanca, Morocco, posted increases in each of the three key performance metrics: occupancy (+8.0% to 58.2%), ADR (+8.7% to MAD1,062.66) and RevPAR (+17.4% to MAD618.35). Absolute levels in the market fell in line with usual January performance. 

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.

About Constant Currency

Constant Currency methodology eliminates the effects of exchange rate fluctuations when calculating performance figures. STR Global utilizes Constant Currency to present the most accurate performance summary of a region comprising different local currencies. All ADR and RevPAR calculations use 31 January 2016 exchange rates.

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About STR Global:

STR Global provides clients - including hotel operators, developers, financiers, analysts and suppliers to the hotel industry - access to hotel research with regular and custom reports covering Europe, Middle East, Africa, Asia Pacific and South America. STR Global provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. Hotel operators can join the surveys on a complimentary basis and benefit from free industry data. STR Global is part of the STR family of companies and is proudly associated with STR, STR Analytics and Hotel News Now. For more information, please visit www.strglobal.com.



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