Benchmark. Middle East Hotel Benchmark Survey Report April 2014

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1 Benchmark Middle East Hotel Benchmark Survey Report April 214 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 April 214 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 2 offices in 15 countries and part of the global EY network with more than 175, people in over 15 countries. Sincerely Yousef Wahbah Partner and Head of MENA Transaction Real Estate Page 3: April 214 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 April 214 Key Performance Highlights Hospitality markets in Jeddah, Riyadh and Makkah have witnessed a positive increase in occupancy Makkah s hospitality market has witnessed an increase in occupancy of 8.% during April 214 compared to the same period last year, however have recorded a decrease in ADR of 17.5%, which resulted in a drop in RevPAR of 7.8% during the same period In April 214, Jeddah s average occupancy levels increased by 2.% from April 213, coupled by a jump in ADR of 11.2% during the same period, from US$235 in April 213 to US$262 in April 214. As per the Saudi Commission for Tourism & Antiquities (SCTA) Jeddah is experiencing healthier number of tourists due to the continuous growth of religious Hajj and Umrah tourism The Riyadh Travel Fair 214 which began on the 15th of April 214 had a positive impact on Riyadh s hospitality market which were reflected by the 1.% jump in average occupancy compared to April last year. RevPAR increased by 8.1% during the same period, despite a slight decrease in ADR from US$229 in April 213 to US$218 in April 214 Beirut and Sharm El Sheikh s hospitality market witness double figure sliding Due to Lebanon s unstable political situation, Beirut has witnessed a decrease in RevPAR of 24.4% in April 214 compared to April 213, the decline in RevPAR was due to the continued drop in average occupancy levels of 12.%, coupled by a decrease in ADR from US$168 in April 213 to US$156 in April 214 Although Cairo is relatively isolated from Sharm El Sheikh it still had an impact on tourism on the Red Sea resort. There has been a decrease in Sharm El Sheikh average occupancy of 15.% in April 214 compared to April 213 as we all as a drop of 4.5% in the ADR during the same period, resulting in a decline in RevPAR of 23.5% UAE s overall hospitality market sees growth in April 214 Dubai s overall average occupancy levels have remained stable at approximately 85.% in both April 213 and 214 even given the notable increase in room supply over the last year. The positive occupancy levels were coupled by an increase in ADR from US$38 in April 213 to US$327 in April 214, resulting in an increase in RevPAR of 5.6% during the same period April 214 ADR in Dubai, while higher than March 214 rates, average occupancy levels dropped from 9% in March 214 to 84% in April 214. The slight month over month decrease in occupancy 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 June/July

4 Markets with the largest variance on a per month basis % Occupancy for Sharm El Shaikh Hotels Occupancy % Occupancy % April 213 April Average Room Rate for Makkah (US$) Average room rate April 213 April Average room rate Rev PAR in Beirut (US$) Room yield Room yield April 213 April

5 Dubai overall monthly performance % Occupancy for Dubai Overall Hotels 1 Occupancy % April 213 April 214 Occupancy % Average room rate for Dubai Overall hotels (US$) 4 Average room rate April 213 April Average room rate Rev PAR in Dubai Overall hotels (US$) 35 Room yield April 213 April Room Yield

6 Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 4/214 Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Sharm El Shaikh EGP % % Jordan Amman JOD % % Lebanon Beirut LBP ,2 254, % 124, , % Qatar Doha QAR % % Saudi Arabia Jeddah SAR % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,998 1, % 1,638 1,545 6.% Dubai City AED % % Dubai Overall AED ,23 1,13 6.5% 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 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: 4/214 Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Sharm El Shaikh US$ % % Jordan Amman US$ % % Lebanon Beirut US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Makkah US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi 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 April) Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Sharm El Shaikh EGP % % Jordan Amman JOD % % Lebanon Beirut LBP , ,559-7.% 11, , % Qatar Doha QAR % % Saudi Arabia Jeddah SAR % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,739 1, % 1,452 1,439.9% Dubai City AED % % Dubai Overall AED ,191 1, % 1,42 1,6 3.6% 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 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 April) Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Sharm El Shaikh US$ % % Jordan Amman US$ % % Lebanon Beirut US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Makkah US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi 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

10 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the 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 ey.com. The MENA practice of EY has been operating in the region since For over 9 years, we have grown to over 5, people united across 2 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. 214 EYGM Limited. All Rights Reserved. ED 115 This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/mena

Benchmark. Middle East Hotel Benchmark Survey Report March 2014

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