Benchmark. Middle East Hotel Benchmark Survey Report December 2013

Transcription

1 Benchmark Middle East Hotel Benchmark Survey Report December 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 EY Middle East Hotel Benchmark Survey We hope you enjoy the December 213 report of the EY 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. EY 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. EY is the largest professional services firm in Middle East with 18 offices in 13 countries and part of the global EY network with over 167, people in 14 countries. Sincerely Yousef Wahbah Partner and Head of MENA Transaction Real Estate Page 3: December 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 Rooms yield. Page 5: Dubai overall occupancy, average room rate and Rooms 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 Key Performance Highlights in December 213 and Full Year 213 Cairo s hospitality market has registered the largest drop in RevPAR in the year 213, as compared to 212 of the countries surveyed within MENA During the year 213, the Cairo hospitality market witnessed a considerable drop in RevPAR when compared to last year. Due to the continued political instability and security concerns plaguing the city during the year, RevPAR decrease by 41.2% compared to the previous year. Although there was no change in ADR between 212 and 213, average occupancy in the city decreased from 38% in 212 to 22% in 213. In December 213 alone, Cairo city s RevPAR decreased by 26.2%, due to a drop in occupancy of 5% during the same period, coupled by a decrease in ADR from US$89 in December 212 to US$8 in December 213 Both Hurghada and Sharm El Shaikh have witnessed a drop in RevPAR in December 213 of 22.6% and 23.1% respectively when compared to December 212. Hurghada s ADR fell from US$32 in December 212 to US$25 in December 213, with a slight drop in average occupancy levels of 2% during the same period. Sharm El Shaikh ADR dropped from US$ to US$44 during the same period, coupled by a decrease in average occupancy of 9%. Hospitality KPIs for Syria s neighbors continued to decline in 213 The Syrian conflict has had a significantly negative effect on its neighboring countries hospitality markets. The US and other countries have renewed travel warning to their citizens traveling to Lebanon, voicing concerns over the recent car bombings in the country. During the full year 213, average occupancy in Beirut amounted to 51%, a decrease of 3% from 212, with average room rates decreasing from US$21 to US$169 during the same period, which resulted in a drop in RevPAR of 2.8%. In December 213, there was a minimal drop in Beirut s hospitality KPI s, a decrease in RevPAR of only 1.6% compared to the same period last year. Jordan s hospitality market also witnessed a decline in Key Performance Indicators due to the Syrian conflict, with RevPAR during the year 213 falling by 8.4% compared to 212, from US$15 to US$96, mainly due to a decrease in average occupancy during 213 of 8% during the same period. However, in December 213, Jordan witnessed an increase in average occupancy of 6% when compared to December 212, resulting in an increase in RevPAR of 1.2% during the same period. General improvement in GCC hospitality market, with the exception of Qatar during 213 GCC cities, notably Manama, Jeddah and Kuwait City have recorded positive changes in hospitality KPI s during 213 compared to last year. Manama, have witnessed an increase in RevPAR of 1.8% during 213 compared to 212, due to governments efforts in stabilizing the political situation in Bahrain during the year. Average occupancy in the city increased from 37% in December 212 to 42% in December 213. Jeddah recorded a 9.3% increase in RevPAR during the year 213 compared to 212, mainly due to an increase in corporate demand in the city as well as the lack of new supply of 4 & 5 star hotel rooms during 213. As per JLL s Q3 213 Jeddah report, There has been no major supply additions to the Jeddah market since Q1 213 with only 1 rooms entering the market, no further additions are expected in the last quarter of 213 due to project delays. Kuwait City, have witnessed an increase in RevPAR of 3.7% in 213 compared to 212, although the increase does not seem significant, it should be noted that based on our research, approximately 753 new room (mix of 4 & 5 star hotels) have come online in 213, most notably the Jumeirah Messilah Beach Hotel & Spa which commenced operations in Q2 213, the hotel offers 48 key. In December 213, Doha s ADR was recorded at US$245 compared to US$31 in December 212, while average occupancy levels remained relatively the same at 62%. The drop in ADR has decreased RevPAR from US$19 to US$153 during the same period. Doha hospitality market witnessed a decrease in RevPAR of 5.4% in 213 when compared to 212, mainly due to a decrease in ADR from US$265 in 212 to US$252 in 213. Dubai s hospitality market witnessed positive growth on all Key Performance Indicators in the year 213 compared to the year 212. During 213, approximately 2,78 new branded hotel rooms all within 4 & 5 star hotel segment were added to Dubai s hotel supply, which include but are not limited to Ocean View Hotel, the Ritz Carlton extension on Jumeirah Beach, the Oberoi hotel in Business Bay, Sofitel, Anantara on Palm Jumeriah, Conrad Hotel, Movenpick Hotel in JLT and Novotel in Al Barsha. Dubai s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, showing a jump in ADR from US$261 in 212 to US$278 in 213, resulting in an overall increase in RevPAR of 5.9% in the same period. In December 213, Dubai overall witnessed a slight increase in RevPAR of 3.4% compared to the same period last year, with occupancy levels holding steady at approximately 82%, even given the notable increase in room supply over the year. Both Abu Dhabi and Al Ain witnessed an increase in RevPAR in the year 213 compared to 212, of 7.4% and 13.5% respectively. Abu Dhabi ADR s increased from US$195 in 212 to US$27 in 213, while Al Ain ADR recorded only a slight increase in ADR of 2.4% compared to the same period. However average occupancy levels in Al Ain increased from 65% in 212 to 72% in 213.

4 Markets with the largest variance on a per month basis % Occupancy for Sharm El Shaikh Hotels Occupancy % Occupancy % December 212 December Average Room Rate for Hurghada (US$) Average room rate December 212 December Average room rate Rev PAR in Doha (US$) Room yield December 212 December Room yield

5 Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % Occupancy % December 212 December Average room rate for Dubai Overall hotels (US$) Average room rate December 212 December Average room rate Rev PAR in Dubai Overall hotels (US$) 3 Room yield December 212 December Room Yield

6 Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 12/213 Currency: Local Occupancy Average room rate Rooms 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 , ,4-1.1% 142, , % Oman Muscat OMR % % Qatar Doha QAR , % % Saudi Arabia Jeddah SAR % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Al Ain AED % % Dubai Beach AED ,572 1, % 1,195 1,194.1% Dubai City AED % % Dubai Overall AED ,119 1,68 4.8% % 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 EY 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, EY 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 EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. 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 EY at

7 Various markets monthly performance (US dollar) EY Middle East Hotel Benchmark Survey Monthly performance: 12/213 Currency: US$ Occupancy Average room rate Rooms 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 EY 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, EY 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 EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. 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 EY at

8 Various markets Year-to-Date performance (Local currency) EY Middle East Hotel Benchmark Survey Year over Year performance (January December) Currency: Local Occupancy Average room rate Rooms 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 ,61 33, % 131, ,26-2.8% Oman Muscat OMR % % Qatar Doha QAR % % Saudi Arabia Jeddah SAR , % % Madina SAR % % Makkah SAR ,158 1, % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Al Ain AED % % Dubai Beach AED ,43 1,299 8.% 1,85 1,3 5.3% Dubai City AED % % Dubai Overall AED , % % 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 EY 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, EY 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 EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. 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 EY at

9 Various markets Year-to-Date performance (US dollar) EY Middle East Hotel Benchmark Survey Year over Year performance (January December) Currency: US$ Occupancy Average room rate Rooms 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 EY 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, EY 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 EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. 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 EY at

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