Benchmark. Middle East hotel benchmark survey report June 2015

Size: px

Start display at page:

Download "Benchmark. Middle East hotel benchmark survey report June 2015"

Ashley Lester
5 years ago
Views:

1 Benchmark Middle East hotel benchmark survey report June 215 The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated

Yousef Wahbah Partner and Head of MENA Transaction Real Estate, Ernst & Young Middle East, UAE EY Middle East hotel benchmark survey We hope you enjoy the June 215 report of the EY Middle East hotel

2 Yousef Wahbah Partner and Head of MENA Transaction Real Estate, Ernst & Young Middle East, UAE EY Middle East hotel benchmark survey We hope you enjoy the June 215 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. The 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 nancial 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 organi ation in the Middle East with 2 of ces in 15 countries and is part of the global EY organization with more than 19, people in 15 countries. Page 3: June 215 key performance highlights Page 4: We have highlighted the largest variance on a per-month basis for the various markets over the last12-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 12 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 dollars Page 8: Year-to-date performance of various markets compared to the previous year. In local currency Page 9: Year-to-date performance of various markets compared to the previous year. In US dollars 2 Benchmark June 215

3 June 215 Key Performance Highlights Hospitality markets in Makkah, Cairo and Jeddah witnessed a positive increase when compared to the same period last year Makkah s hospitality market witnessed a triple digit increase in RevPAR of 178.6% in June 215 when compared to same period last year, this was mainly due to the increase in ADR from US$159 in June 214 to US$412 in June 215. Furthermore, Arab news announced 14 million worshippers and pilgrims have visited Makkah in the rst half of Ramadan, totaling an increase of 4% when compared to the same period last year. In June 215, Cairo s hospitality market witnessed an increase in occupancy from 35.% in June 214 to 42.% in June 215. The increase in occupancy was coupled with a jump in ADR from US$9 in June 214 to US$18 in June 215, resulting in a rise in RevPAR by 42.5% in June 215 when compared to the same period last year. Jeddah s hospitality market witnessed an increase in average occupancy from 78.% in June 214 to 84.% in June 215, which resulted in an increase in RevPAR by 12.8% from US$236 in June 214 to US$266 in June 215, this may be ascribed to the many believers who traveled through Jeddah to visit the Holy City of Makkah. Dubai and Abu Dhabi s hospitality market witnessed a drop in RevPAR performance when compared to June 214 With the start of the Holy month of Ramadan and the cities typical summer season both Dubai and Abu Dhabi s hospitality market witnessed a dip in key performance indicators. Hotels across Dubai witnessed a drop in RevPAR by 1.7% in June 215 when compared to the same period last year, this was mainly due to the decrease in occupancy from 77.5% in June 214 to 68.3% in June 215. In June 215, Abu Dhabi s hospitality market witnessed a decrease in RevPAR from US$99 in June 214 to US$74 in June 215. Occupancy also fell by 13.% in June 215 when compared to the same period last year. Kuwait and Amman s hospitality market performance dropped when compared to June 214 Manama s hospitality market witnessed a decrease in RevPAR of 1.9% in June 215 when compared to June 214, this was mainly due to ADR dropping from US$233 in June 214 to US$212 in June 215, coupled by a slump in average occupancy of 1.% in June 215 when compared to the same time last year. In June 215, Jeddah s hospitality market witnessed a decrease in occupancy by 5.% when compared to the same period last year. ADR dropped from US$279 in June 214 to US$268 in June 215, which resulted in a drop in RevPAR from US$218 in June 214 to US$198 in June 215, this may be endorsed from vacationing Saudis ensued ahead of Ramadan. Benchmark 3

4 Markets with the largest variance on % Occupancy for Cairo Hotels 7 Occupancy % June 214 June Occupancy % Average Room Rate for Jeddah (US$) Average room rate Average room rate June 214 June RevPAR in Amman (US$) 14 Room yield June 214 June Room yield Benchmark June 215

5 Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % June 214 June 215 Occupancy % Average room rate for Dubai Overall hotels (US$) Average room rate June 214 June Average room rate RevPAR in Dubai Overall hotels (US$) Room yield June 214 June Room yield Benchmark 5

6 Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: June 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP ,44 275,433.% 157, , % Qatar Doha QAR % % Saudi Arabia Jeddah SAR ,18 1, % % Madina SAR % % Makkah SAR , % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED % % 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 of ce 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, we have not performed an audit or review of the information gathered and do 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 of ce at Benchmark June 215

7 Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: June 215 Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina SAR % % Makkah SAR % % 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 of ce 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 do 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 of ce at Benchmark 7

8 (local currency) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP ,15 254, % 149,35 127, % Qatar Doha QAR % % Saudi Arabia Jeddah SAR , % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,469 1, % 1,222 1, % Dubai City AED % % Dubai Overall AED ,63 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 of ce 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, we have not performed an audit or review of the information gathered and do 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 of ce at Benchmark June 215

9 (US dollars) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah SAR % % Madina SAR % % Makkah SAR % % Riyadh SAR % % 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 of ce 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 do 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 of ce at Benchmark 9

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. 215 EYGM Limited. All Rights Reserved. ED none 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

Benchmark. Middle East hotel benchmark survey report Benchmark Middle East hotel benchmark survey report May 215 The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international