Africa Business Communities
Hotel Occupancy in the Middle East And Africa Region Down 0.2% to 67.2% for February 2015

Hotel Occupancy in the Middle East And Africa Region Down 0.2% to 67.2% for February 2015

The Middle East/Africa region reported positive year-over-year results in two of the three major performance metrics during February 2015 when reported in U.S. dollars, according to data compiled by STR Global. 

The region reported a 0.2-percent decrease in occupancy to 67.2 percent, a 1.3-percent rise in revenue per available room to US$118.64 and a 1.5-percent increase in average daily rate to US$176.64.

The moderate increase in RevPAR was driven primarily by ADR, according to Elizabeth Winkle, STR Global’s managing director.

When looking at the three Middle East/Africa sub-regions, Northern Africa posted the top increases in all three performance metrics when reported in U.S. dollars. The sub-region experienced a 3.7-percent improvement in occupancy to 47.1 percent, a 13.8-percent increase in RevPAR to US$40.71 and a 9.7-percent rise in ADR to US$86.39.

The Middle East sub-region saw decreases in two of the three major metrics, including a 1.3-percent decline in RevPAR to US$159.61.

“Despite the Middle East showing a decrease in RevPAR, the sub-region still has the strongest figures coming out of the region”, Winkle said. “The Middle East recorded an ADR in excess of US$200.00 (US$214.56), including occupancy levels above 70 percent (74.4 percent). Whilst Northern Africa is posting strong improvement, occupancy remains below 50 percent in that sub-region”. 

Amongst the key countries in the region, Egypt experienced significant increases in RevPAR (+33.3 percent to US$36.75) and ADR (+28.9 percent to US$78.00). When looking at markets within the region, Cairo, Egypt, reported the highest increases in both occupancy (+39.7 percent to 51.2 percent) and RevPAR (+43.9 percent to US$52.88).

“Egypt’s occupancy managed to increase for the eighth consecutive month”, Winkle said. “The ADR growth also has been positive, continuing the strong ADR growth since 2013. Cairo managed to increase RevPAR by an astonishing 43.9 percent; however, this is still one of the lowest values in comparison to other sub-markets in the region”.

Amongst countries, Nigeria reported decreases in all three performance metrics, including a 36.3-percent decline in RevPAR to US$100.59.

“Due to insecurity crisis issues in the region, Nigeria experienced a 22.9-percent decline in occupancy to 45.4% but is still maintaining high ADR levels exceeding US$220.00 (US$221.62)”. 

 

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