Benchmark. Middle East Hotel Benchmark Survey Report July 2013

Transcription

1 Benchmark Middle East Hotel Benchmark Survey Report July 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 July 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: July 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 July 213 Key performance highlights Mekkah and Madina witness significant increase in RevPAR in July 213 compared to the same period last year In July 213, the hospitality market in Mekkah and Madina achieved average RevPARs of USD 49 and USD 238 respectively, an increase of 34.2% and 12.2% respectively than July 212 results. As the Holy month of Ramadan was celebrated during most of the month of July 213, hotels in the Holy cities achieved substantially higher rates than in July 212, reporting increases in ARR of 62.4% and 45.5% in Makkah and Madina respectively. On the other hand, the high-end hospitality markets in these cities have seen drop in occupancy rates of 18% and 15% in Makkah and Madina respectively, when comparing July 213 results to July 212. This was primarily due to the large influx of quality room supply in those markets, such as the opening of the Swissotel Makkah, which released 1,487 rooms in end of July 212. During the Holy month of Ramadan, Jeddah also witnessed a significant increase in RevPAR of 15.8%, driven by the increase in ARR from USD 251 to USD 294 when compared to the same period last year. Due to the political instability in the Levant region, the Egyptian and Lebanese hospitality markets suffered a steep decrease in rooms yield when comparing July 213 to July 212 Cairo s hospitality market has seen a sharp decrease in July 213 RevPAR of 67.5% as compared to July 212 figures, mainly due to low occupancy rates in July 213 averaged 11.2% in the city. This decrease of occupancy was primarily attributable to the political instability that the city had been facing over the summer of 213. Hurghada and Sharm El Shaikh have also been experiencing a slowdown in performance, with RevPARs decreasing by 1.6% and 11.8% when comparing July 213 to July 212 results. The Lebanese hospitality market continue to record a decrease in RevPAR reaching USD 67 in July 213, which was 39.9% lower than in July 212. This was primarily due to the security situation in the region suggesting a fear of violence spillover from the neighboring Syria crisis. Dubai s hospitality market continues to perform on a year to date bases, despite the 24% decrease in RevPAR witnessed during July 213, as compared to July 212 Dubai s overall RevPAR of USD 91 in July 213, was 24% lower than in July 212, this was factored by the decrease in occupancy rates, from 68.2% to 5.9% over the same period last year. The lower occupancy rates experienced in July 213 are justified by the increase in branded supply of 3,5 rooms during 212, in addition to 5 branded rooms in the first quarter of 213. However, Dubai s RevPAR on a year to date bases increased by 6.% compared to the same period last year.

4 Markets with the largest variance on a per month basis % Occupancy for Cairo Overall Hotels 6 Occupancy % Occupancy % Average Room Rate for Makkah (US$) Average room rate Average room rate Rev PAR in Beirut Hotels (US$) Room yield Room yield

5 Dubai overall monthly performance % Occupancy for Dubai Overall hotels Occupancy % Occupancy % Average room rate for Dubai Overall hotels (US$) Average room rate Average room rate Rev PAR in Dubai Overall hotels (US$) 35 Room yield Room yield

6 Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 7/213 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 , , % 11, , % Oman Muscat OMR % % Qatar Doha QAR % % Saudi Arabia Jeddah SAR , % % Madina SAR ,485 1, % % Makkah SAR ,474 1, % 1,836 1, % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Al Ain 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 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: 7/213 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 July) 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 , , % 138,95 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 ,37 1, % 1,91 1,21 6.9% 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 July) 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

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 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. 213 Ernst & Young. All Rights Reserved. ED 114 This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global EY organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. ey.com/mena