Benchmark. Middle East Hotel Benchmark Survey Report April 2013

Transcription

1 Benchmark Middle East Hotel Benchmark Survey Report April 213 The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the 5 star and 4 star segment.

2 Introduction Ernst & Young Middle East Hotel Benchmark Survey We hope you enjoy the April 213 report of the Ernst & Young Middle East Hotel Benchmark Survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and year to date basis in local currencies and US dollars. This monthly Middle East Hotel Benchmark Survey is part of our services to the hospitality sector. Ernst & Young s Transaction Real Estate Advisory Services team headquartered in Dubai is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. Our specialist services include acquisitions, capital sourcing, highest and best use analysis, due diligence, market and financial feasibility studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center. Ernst & Young is the largest professional services firm in Middle East with 18 offices in 13 countries and part of the global Ernst & Young network with over 167, people in 14 countries. Sincerely Yousef Wahbah Partner and Head of MENA Transaction Real Estate Page 3: April 213 Key Performance Highlights Page 4: We have highlighted the largest variance on a per month basis for the various markets over the last twelve month period in regards to occupancy, average room rate, and room yield Page 5: Dubai overall occupancy, average room rate and room yield over the past twelve months Page 6: Monthly performance of various markets compared to the previous year s monthly period in local currency. Page 7: Monthly performance of various markets compared to the previous year s monthly period in US Dollar currency. Page 8: Year to Date performance of various markets compared to previous year period in local currency. Page 9: Year to Date performance of various markets compared to previous year period in US Dollar currency.

3 Q1 213 & April 213 Key Performance Highlights Hurghada s hospitality market has registered the strongest growth in RevPAR through Q1 213, as compared to Q1 212 of the countries surveyed within MENA During Q1 213, the Hurghada hospitality market witnessed a considerable increase in RevPAR when compared to last year. Q1 213 was a positive period for both Hurghada and Sharm El Shaikh as they both achieved REVPAR growth of 6% and 33% respectively over the same period last year. The Hurghada hotel market has continued its upward trend on last year s performance with occupancy growing 11% in April 213 compared to April 212, coupled with a substantial increase in average room rate of 46.1% over last year. Kuwait City s hospitality market witnessed an increase in both occupancy and average room rate during the month of April 213 compared to previous year, due to a number of events and exhibitions drawing visitors to the city (e.g. Spring Shopping Festival 213, EGYTIX 213 and the Asian Hunting & Shooting Exhibition). Average occupancy rose from 56% in April 212 to 67% in April 213. This was supported by a 7.5% rise in average room rates from USD 288 in April 212 to USD 31 in April 213, resulting in an overall increase in RevPAR of approximately 29% year on year. Hospitality KPIs for Syria s neighbors continued to decline throughout Q1 213 The Syrian conflict has had a significantly negative effect on its neighboring countries hospitality markets with no positive outlook anticipated in the near term. GCC Foreign Ministries have issued travel warnings to their citizens currently present in Lebanon to leave the country and urged others to refrain from traveling to Lebanon. GCC nationals historically have represented approximately 4% of tourist spend in Lebanon. During Q1 213, average occupancy in Beirut averaged 56%, a decrease of 1% from Q1 212, with average room rates decreasing by 23% for the same period. In April 213, Beirut s average room rate decreased approximately 22% over April last year, with RevPAR declining approximately 23%. Jordan s hospitality market also witnessed a decline in Key Performance Indicators due to the Syrian conflict, with RevPAR through Q1 213 falling 21% compared to Q1 212, from USD 116 to USD 92, mainly due to a decrease in average occupancy through Q1 213 of 22%. In April 213 alone, Jordan witnessed a further decrease in hotel occupancy levels of approximately 18% year on year with RevPAR decreasing by 15%. Due to the political instability in parts of Egypt, Cairo s hospitality market witnessed a downward trend in Q1 213 compared to Q1 212, with RevPAR dropping by 1%. Although average room rates increased by 5% through Q1 213, the decrease in average occupancy of 5% was the primary factor in market s slight year on year performance drop. Through April this year, Cairo s hotels have continued to experience the same declining trend, showing a decrease in RevPAR of 36% year on year, mainly impacted by a drop in average occupancy of 2% over the same period. Dubai s hospitality market witnessed positive growth on all Key Performance Indicators through Q1 213 compared to the same period last year During 212, approximately 3, new branded hotel rooms were added to Dubai s hotel supply, including three major 5-star hotel openings Tower 1 JW Marriot Marquis, Rayhaan by Rotana and Fairmont The Palm. An additional branded rooms were introduced during Q1 213, including Ocean View Hotel and the Ritz Carlton extension on Jumeirah Beach, all within the 4 and 5-star hotel segment. Dubai s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, showing a jump in average room rates from USD 292 to USD 314 and a slight increase of 2% in average occupancy from the same period last year, resulting in an overall increase in RevPAR of 9.7% in Q1 213 compared to Q April 213 saw no change in hotels in Dubai overall, with occupancy levels holding steady at 86% compared to April 212, even given the notable increase in room supply over the last year. April s average daily rates in Dubai, while nominally lower than March s rates, still grew by 1% from USD 311 to USD 313 over April 212. The slight month over month decrease from March to April is in line with the market s typical seasonality, as tourism inflows begin to slow towards the hot summer months and Ramadan in July.

4 Markets with the largest variance on a per month basis % Occupancy for Kuwait Hotels 8 Occupancy % April 212 April 213 Occupancy % Average Room Rate for Hurghada (US$) Average Room Rate Average Room Rate April 212 April Rev PAR in Cairo City Hotels (US$) Room Yield April 212 April Room Yield

5 Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % Occupancy % April 212 April Average Room Rate for Dubai Overall Hotels (US$) Average Room Rate April 212 April Average Room Rate Rev PAR in Dubai Overall Hotels (US$) 3 Room Yield Arpil 212 April Room Yield

6 Various markets monthly performance (Local Currency) Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 4/213 Currency: Local Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Cairo Overall EGP % % Hurghada EGP % % Sharm El Shaikh EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP , , % 16,755 29, % Oman Muscat OMR % % Qatar Doha QAR ,24-5.% % Saudi Arabia Jeddah SAR , % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Al Ain AED % % Dubai Beach AED ,74 1,694.6% 1,467 1, % Dubai City AED % % Dubai Overall AED ,1 1,143.6% % Notes Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Young s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at

7 Various markets monthly performance (US Dollar) Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 4/213 Currency: US$ Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Cairo Overall US$ % % Hurghada US$ % % Sharm El Shaikh US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Oman Muscat US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Makkah US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi US$ % % Al Ain US$ % % Dubai Beach US$ % % Dubai City US$ % % Dubai Overall US$ % % Notes Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Young s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at

8 Various markets Year to Date performance (Local Currency) Ernst & Young Middle East Hotel Benchmark Survey Year to Date Performance: 1/213 4/213 Currency: Local Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Cairo Overall EGP % % Hurghada EGP % % Sharm El Shaikh EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP , , % 142, , % Oman Muscat OMR % % Qatar Doha QAR ,4-3.8% % Saudi Arabia Jeddah SAR % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Al Ain AED % % Dubai Beach AED ,597 1, % 1,39 1,35 6.5% Dubai City AED % % Dubai Overall AED ,152 1,9 5.6% 1, % Notes Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Young s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at

9 Various markets Year to Date performance (US Dollar) Ernst & Young Middle East Hotel Benchmark Survey Year to Date Performance: 1/213 4/213 Currency: US$ Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Cairo Overall US$ % % Hurghada US$ % % Sharm El Shaikh US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Oman Muscat US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Makkah US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi US$ % % Al Ain US$ % % Dubai Beach US$ % % Dubai City US$ % % Dubai Overall US$ % % Notes Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Young s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at

10 Ernst & Young Assurance Tax Transactions Advisory About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167, people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit The MENA practice of Ernst & Young has been operating in the region since For over 9 years, we have evolved to meet the legal and commercial developments of the region. Across MENA, we have over 4,2 people united across 18 offices and 13 Arab countries, sharing the same values and an unwavering commitment to quality. For more information, please visit Ernst & Young. All Rights Reserved. ED None