Benchmark. Middle East Hotel Benchmark Survey Report March 2014

Transcription

1 Benchmark Middle East Hotel Benchmark Survey Report March 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 March 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: March 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 March 214 Key Performance Highlights Cairo s Hospitality Market has experienced a positive increase in March 214, however Sharm El Shaikh has declined Cairo City has witnessed an increase in RevPAR of approximately 33.5% in March 214 when compared to March 213. The increase was mainly due to an increase in ADR from US$73 in March 213 to US$83 in March 214. The increase in ADR was coupled with a slight increase in occupancy of 5% during the same period Egypt s Red Sea city resorts, more specifically Sharm El Shaikh, have continued the downward trend seen from the beginning of this year. Sharm El Shaikh have recorded a decrease in occupancy over last year of approximately 17%, and a drop in ADR of 3.7%, resulting in a decrease in RevPAR of 28% in March 214 compared to the same period last year The hospitality market in Lebanon, Qatar and Madina witnessed declines in March 214 Continuing the downward trend seen in January and February, Beirut average room rates decreased by approximately 1.4%, year on year, during the month of March, falling from US$165 in March 213, to US$148 this year Average occupancy decreased by 18% over last year, resulting in one of the largest corresponding decreases in RevPAR of 37.7%, dropping from US$99 during March 213 to US$62 during March this year Qatar experienced a significant decrease in RevPAR in March 214 of 2.9% when compared to the previous year. The decrease in RevPAR was mainly due to a decline in ADR from US$276 in March 213 to US$236 in March 214. However, it should be noted that in February 214, Doha recorded ADR s of approximately US$234 Dubai s hospitality market sees healthy growth continue through March 214 Dubai s overall average occupancy decreased slightly by approximately 2.9% in March 214 over last year. The decrease was mainly due to drop in Dubai Beach hotels, which witnessed a decline in ADR of approximately 5.4%, coupled by a slight decline in occupancy of 1% Contrast to the Dubai Beach hotels, Dubai City hotel performance recorded an increase in ADR from US$226 in March 213 to US$232 in March 214, coupled with a slight increase in occupancy of 1%, which proves how well the Dubai hospitality market is performing given that the additional supply of 4 & 5 star hotels that entered the market between the two periods has been absorbed RevPAR in March 214 has increased from US$278 in February 214 to US$286 in March 214. The month on month increase was mainly due to an increase in ADR from US$313 to US$319 during the same period

4 Markets with the largest variance on a per month basis % Occupancy for Beirut Hotels 7 65 Occupancy % March 213 March Occupancy % Average Room Rate for Madina (US$) Average room rate March 213 March Average room rate Rev PAR in Sharm El Shaikh (US$) Room yield March 213 March 214 Room yield

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

6 Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 3/214 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 ,534 25, % 93,555 15, % Qatar Doha QAR ,3-14.3% % Saudi Arabia Jeddah SAR % % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,754 1, % 1,532 1, % Dubai City AED % % Dubai Overall AED ,173 1,27-2.8% 1,49 1,81-2.9% 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: 3/214 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 March) Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% 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 , , % 94, , % 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 ,661 1, % 1,395 1,46 -.8% Dubai City AED % % Dubai Overall AED ,188 1, % 1,52 1,21 3.% 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 March) Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% 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 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