Benchmark. Middle East Hotel Benchmark Survey Report January 2013

Transcription

1 Benchmark Middle East Hotel Benchmark Survey Report January 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 January 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: January 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 January 213 Key Performance Highlights Hospitality market witnesses positive increase(s) in Egypt and Bahrain During the month of January this year, Hurghada s average Occupancy amounted to 63%, an increase of approximately 2% from the previous year. This increase in Occupancy was due to the relative political improvement in the region. The increase in Hurghada s average Occupancy is coupled with an increase of 14.1% in Average room rate during the same period, resulting in an increase in Rev PAR of approximately 64.9%, the largest increase in Middle East based on our survey. Hurghada s peak season is between the months of December to March, it is worth noting that during the month of September 212, Hurghada s attained an average Occupancy of 89%, the largest during the year. It should be noted, Egypt overall has experienced positive increase in its hospitality market for the month of January 213 compared to the previous year, due to the relative improvement of the political stabilization of the country as shown in the Various markets monthly performance section of our report. Furthermore, it is worth mentioning Manama, Bahrain has also witnessed positive increase in its hospitality market during the same period, due to the improved level of security in the country, this is demonstrated by a 42.3% increase in Rev PAR during January 213. Political instability negatively impacted Lebanon and Jordan hospitality market During the month of January this year, Beirut had witnessed the largest decrease in Average room rate in the Middle East of 27.2% based on our survey. During the 12 month period, Average room rate decreased from USD229 to USD167. Average Occupancy has dropped by 11.% during the same period, resulting in the largest decrease in Rev PAR of 41.2%. The decrease in Beirut s hospitality market is attributed to the political unrest in neighboring Syria, as well as the fragility of Lebanon s own internal security. As shown in the table on the following, Average room rate decreased at a steady slope in the previous year and would continue to slide if the political instability in the region carries on. It is worth mentioning Lebanon s other neighboring country Jordan has recorded lower levels of average Occupancy, dropping from 68% during January 212 to 5% in January 213, resulting in a decrease in Rev PAR of 2.3%. Dubai hospitality market sees positive growth during January 213 Dubai s average Occupancy in January 213 increased by approximately 6% from the previous month and 2% for the previous year. The increase in Occupancy was coupled with an even bigger jump in Average room rate. During the same month, Average room rate in Dubai amounted to USD313 compared to USD274 in January 212. Furthermore, Average room rate during the month increased by approximately 1% compared to the previous month as shown in Dubai overall monthly performance section of our report.

4 Markets with the largest variance on a per month basis % Occupancy Hurghada Hotels 1 Occupancy % January 212 January 213 Occupancy % Average Room Rate Beirut Hotels (US$) Average Room Rate January 212 January 213 Average Room Rate Rev PAR in Hurghada Overall Hotels (US$) 4 Room Yield January 212 January Room Yield

5 Dubai overall monthly performance % Occupancy Dubai Overall Hotels Occupancy % Occupancy % January 212 January Average Room Rate Dubai Overall Hotels (US$) 35 Average Room Rate January 212 January Average Room Rate Rev PAR in Dubai Overall Hotels (US$) Room Yield January 212 January Room Yield

6 Various markets monthly performance (Local Currency) Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 1/213 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 , , % 123,782 21, % 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 ,558 1, % 1,337 1, % Dubai City AED % % Dubai Overall AED ,151 1,72 7.4% 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

7 Various markets monthly performance (US Dollar) Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 1/213 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 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 1/213 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 , , % 123,782 21, % 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 ,558 1, % 1,337 1, % Dubai City AED % % Dubai Overall AED ,151 1,72 7.4% 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: 1/213-1/213 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 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 5,3 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