STR’s preliminary March 2019 data for Jeddah, Saudi Arabia, indicates a drop in room rates during low occupancy season.
Based on daily data from March, Jeddah reported the following in year-over-year comparisons:
• Supply: +7.7%
• Demand: +10.7%
• Occupancy: +2.8% to 48.8%
• Average daily rate (ADR): -17.1% to SAR563.89
• Revenue per available room (RevPAR): -14.8% to SAR275.21
The absolute ADR value was the lowest for any month in Jeddah since April 2008. As a result, RevPAR fell to its lowest March level since 2007. STR analysts note that while demand outpaced continued significant supply growth in Jeddah, a very competitive marketplace during low season led to hoteliers sacrificing room rate to maintain market share.
STR will release full March results later this month.
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