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.
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.
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.
Markets with the largest variance on a per month basis % Occupancy for Cairo Overall Hotels 6 Occupancy % 5 42 48 45 Occupancy % 4 3 38 36 32 32 25 27 32 35 38 2 1 11 Average Room Rate for Makkah (US$) 8 7 723 Average room rate 66 6 571 Average room rate 5 4 3 2 46 183 364 249 25 222 213 26 168 25 1 Rev PAR in Beirut Hotels (US$) Room yield 12 1 8 6 4 112 62 79 68 62 Room yield 88 82 97 93 16 98 11 67 2
Dubai overall monthly performance % Occupancy for Dubai Overall hotels Occupancy % 1 9 8 7 6 5 4 68 62 73 87 91 Occupancy % 84 9 9 9 86 83 79 51 3 2 1 Average room rate for Dubai Overall hotels (US$) 35 3 32 39 Average room rate 285 313 298 328 313 25 243 Average room rate 2 15 176 188 24 192 179 1 5 Rev PAR in Dubai Overall hotels (US$) 35 Room yield 3 25 261 281 238 282 267 295 269 Room yield 2 15 12 117 148 22 152 1 91 5
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 213 212 Change 213 212 Change Bahrain Manama BHD 28. 33. -5. 74 59 25.6% 21 2 8.8% Egypt Cairo City EGP 1. 36. -26. 571 511 11.7% 62 188-67.1% Cairo Overall EGP 11.2 38.4-27.2 567 51 11.2% 64 196-67.5% Hurghada EGP 72. 88. -16. 191 175 9.3% 138 154-1.6% Sharm El Shaikh EGP 62. 79. -17. 27 241 11.9% 169 192-11.8% Jordan Amman JOD 48. 6. -12. 19 19.2% 53 66-2.% Kuwait Kuwait KWD 52. 43. 9. 75 85-12.3% 39 37 6.6% Lebanon Beirut LBP 4. 54. -14. 253,762 312,956-18.9% 11,756 169,184-39.9% Oman Muscat OMR 34. 51. -17. 69 69 -.6% 24 36-33.9% Qatar Doha QAR 46. 52. -6. 85 827-2.7% 371 432-14.1% Saudi Arabia Jeddah SAR 82. 83. -1. 1,14 943 17.1% 912 788 15.8% Madina SAR 6. 78. -18. 1,485 1,21 45.5% 894 797 12.2% Makkah SAR 74. 89. -15. 2,474 1,524 62.4% 1,836 1,369 34.2% Riyadh SAR 46. 5. -4. 774 738 4.9% 361 375-3.9% United Arab Emirates Abu Dhabi AED 56. 62. -6. 51 52 1.6% 287 312-8.% Al Ain AED 56. 54. 2. 41 429-4.4% 232 235-1.6% Dubai Beach AED 52. 67. -15. 79 76 3.9% 412 511-19.4% Dubai City AED 49. 68. -19. 586 587 -.1% 29 44-28.2% Dubai Overall AED 5.9 68.2-17.4 659 647 1.9% 335 442-24.% 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 + 971 4 332 4.
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 213 212 Change 213 212 Change Bahrain Manama US$ 28. 33. -5. 196 156 25.6% 57 52 8.8% Egypt Cairo City US$ 1. 36. -26. 99 89 11.7% 11 33-67.1% Cairo Overall US$ 11.2 38.4-27.2 98 88 11.2% 11 34-67.5% Hurghada US$ 72. 88. -16. 33 3 9.3% 24 27-1.6% Sharm El Shaikh US$ 62. 79. -17. 47 42 11.9% 29 33-11.8% Jordan Amman US$ 48. 6. -12. 155 155.2% 75 94-2.% Kuwait Kuwait US$ 52. 43. 9. 255 291-12.3% 135 127 6.6% Lebanon Beirut US$ 4. 54. -14. 167 27-18.9% 67 112-39.9% Oman Muscat US$ 34. 51. -17. 179 18 -.6% 61 93-33.9% Qatar Doha US$ 46. 52. -6. 221 227-2.7% 12 119-14.1% Saudi Arabia Jeddah US$ 82. 83. -1. 294 251 17.1% 243 21 15.8% Madina US$ 6. 78. -18. 396 272 45.5% 238 212 12.2% Makkah US$ 74. 89. -15. 66 46 62.4% 49 365 34.2% Riyadh US$ 46. 5. -4. 26 197 4.9% 96 1-3.9% United Arab Emirates Abu Dhabi US$ 56. 62. -6. 139 137 1.6% 78 85-8.% Al Ain US$ 56. 54. 2. 112 117-4.4% 63 64-1.6% Dubai Beach US$ 52. 67. -15. 215 27 3.9% 112 139-19.4% Dubai City US$ 49. 68. -19. 16 16 -.1% 79 11-28.2% Dubai Overall US$ 5.9 68.2-17.4 179 176 1.9% 91 12-24.% 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 + 971 4 332 4.
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 213 212 Change 213 212 Change Bahrain Manama BHD 42. 36. 6. 79 81-2.1% 34 3 14.7% Egypt Cairo City EGP 26. 37. -11. 51 466 7.5% 135 174-22.4% Cairo Overall EGP 28. 39. -11. 59 465 9.5% 146 182-2.1% Hurghada EGP 71. 67. 4. 212 156 35.7% 152 16 43.2% Sharm El Shaikh EGP 69. 72. -3. 31 246 26.% 216 178 21.4% Jordan Amman JOD 61. 76. -15. 111 16 4.7% 68 81-16.7% Kuwait Kuwait KWD 6. 54. 6. 86 85.8% 52 46 12.6% Lebanon Beirut LBP 55. 63. -8. 251,254 316,979-2.7% 138,95 21,979-31.2% Oman Muscat OMR 68. 68.. 8 78 2.% 54 54 1.8% Qatar Doha QAR 67. 66. 1. 929 962-3.5% 629 641-1.9% Saudi Arabia Jeddah SAR 8. 81. -1. 1,41 97 14.8% 837 736 13.8% Madina SAR 71. 73. -2. 793 696 14.1% 567 512 1.9% Makkah SAR 79. 86. -7. 1,22 869 17.6% 816 75 8.8% Riyadh SAR 62. 6. 2. 835 862-3.1% 519 522 -.6% United Arab Emirates Abu Dhabi AED 77. 76. 1. 765 712 7.3% 59 542 8.9% Al Ain AED 69. 62. 7. 496 57-2.2% 345 317 8.6% Dubai Beach AED 79. 79.. 1,37 1,288 6.3% 1,91 1,21 6.9% Dubai City AED 81. 83. -2. 788 735 7.3% 645 615 4.9% Dubai Overall AED 81. 81.. 1,6 94 7.% 816 77 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 + 971 4 332 4.
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 213 212 Change 213 212 Change Bahrain Manama US$ 42. 36. 6. 21 215-2.1% 9 79 14.7% Egypt Cairo City US$ 26. 37. -11. 87 81 7.5% 23 3-22.4% Cairo Overall US$ 28. 39. -11. 88 81 9.5% 25 32-2.1% Hurghada US$ 71. 67. 4. 37 27 35.7% 26 18 43.2% Sharm El Shaikh US$ 69. 72. -3. 54 43 26.% 37 31 21.4% Jordan Amman US$ 61. 76. -15. 158 151 4.7% 96 116-16.7% Kuwait Kuwait US$ 6. 54. 6. 294 292.8% 179 159 12.6% Lebanon Beirut US$ 55. 63. -8. 166 29-2.7% 92 133-31.2% Oman Muscat US$ 68. 68.. 28 24 2.% 142 139 1.8% Qatar Doha US$ 67. 66. 1. 255 265-3.5% 173 176-1.9% Saudi Arabia Jeddah US$ 8. 81. -1. 278 242 14.8% 223 196 13.8% Madina US$ 71. 73. -2. 212 186 14.1% 151 136 1.9% Makkah US$ 79. 86. -7. 273 232 17.6% 218 2 8.8% Riyadh US$ 62. 6. 2. 223 23-3.1% 138 139 -.6% United Arab Emirates Abu Dhabi US$ 77. 76. 1. 28 194 7.3% 161 148 8.9% Al Ain US$ 69. 62. 7. 135 138-2.2% 94 86 8.6% Dubai Beach US$ 79. 79.. 373 351 6.3% 297 278 6.9% Dubai City US$ 81. 83. -2. 215 2 7.3% 176 167 4.9% Dubai Overall US$ 81. 81.. 274 256 7.% 222 21 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 + 971 4 332 4.
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