Benchmark Middle East Hotel Benchmark Survey Report January 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.
Introduction EY Middle East Hotel Benchmark Survey We hope you enjoy the January 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 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: January 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.
January 214 Key Performance Highlights Hospitality market witnesses positive increases in Qatar, and Oman During the month of January this year, Doha s hospitality market recorded average occupancy levels of 7%, an increase of approximately 9% from the same period last year. The increase is due to the growth in business travel to the country, as several project tenders have been issued in relation to the Qatar World Cup 222. Furthermore, Doha International Airport announced a record 2.2 million passenger travelling in January 214, up by approximately 18% from January 213. The jump in Doha s average occupancy was coupled with an increase in average room rate from USD 23 in January 213 to US$243 in January 214, resulting in RevPAR growth of approximately 21.1% compared to the same period last year. Muscat s hospitality market witnessed an increase in RevPAR of approximately 15.5% in January 214 compared to January 213, which was mainly due to a healthy growth in average occupancy from 71% to 85% during the same period. The Oman Ministry of Tourism (OMT) has partnered with Oman Air as well as a selection of the country s hotels to launch a range of holiday packages called Oman Short Breaks in the beginning of the year. This was an initiative to attract more visitors from the GCC to Oman, the OMT Director General of Tourism Promotions said The OMT, in association with several key players in the travel and tourism sector, are aggressively promoting the Sultanate as an attractive global tourist destination. Political instability continue to negatively impact Lebanon and Egypt hospitality market In January 214, Beirut had witnessed a 3% decrease in RevPAR, dropping from US$87 in January 213 to US$6 in January 214. Due to the country s unstable security, average occupancy declined by 14% in the same period, coupled with a drop in average room rate from US$173 in January 213 to US$167 in January this year. Egypt s hospitality market has continued with its downward trend, as the political unrest in the country has had a major impact on the number of visitors. Cairo City recorded a decrease in RevPAR of approximately 34% in January 214, compared to the same period last year. The Red Sea city resorts such as Hurghada and Sharm El Shaikh, have also witnessed a drop in RevPAR of 22.8% and 14.6% respectively during the same period. It should be noted that Hurghada achieved an increase in average occupancy of 8% in January 214 compared to January 213, however average room rates declined by approximately 31% during the same period. Dubai hospitality market sees positive growth during January 214 In January 214, Dubai overall hospitality market recorded average occupancy of 87%, a slightly drop from January 213 of 2.6%, however it should be noted that over 2,78 new branded hotel rooms all within 4 & 5 star hotel segment were added to Dubai s room supply during 213. Dubai s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, showing a jump in average room rates from US$38 in January 213 to US$337 January 214, resulting in an increase in RevPAR of 6.2% during the same period. In January 214, Dubai s hospitality market performance improved month over month, with average occupancy growing by approximately 5%, coupled with an increase in average room rate from US$35 in December 213 to US$337 in January 214.
Markets with the largest variance on a per month basis % Occupancy for Beirut Hotels 7 6 6 58 65 59 Occupancy % January 213 January 214 55 47 48 47 52 Occupancy % 4 3 4 34 36 2 1 Average Room Rate for Hurghada (US$) 45 4 39 41 41 Average room rate January 213 January 214 46 41 4 Average room rate 35 3 25 2 33 34 34 33 26 25 27 15 1 5 Rev PAR in Madina (US$) 3 Room yield January 213 January 214 3 298 2 238 Room yield 2 1 1 143 163 158 138 17 112 171 78 7 138 164
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % 1 9 8 7 6 9 9 9 86 83 Occupancy % January 213 January 214 79 51 7 75 83 86 82 87 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 4 4 Average room rate January 213 January 214 Average room rate 3 3 2 2 1 38 298 328 313 243 192 179 213 221 33 333 35 337 1 Rev PAR in Dubai Overall hotels (US$) 4 Room yield January 213 January 214 3 Room Yield 3 2 2 1 277 267 295 269 22 152 149 165 274 286 251 294 1 91
Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 1/214 Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 43. 57. -14. 84 75 12.7% 36 43-15.2% Egypt Cairo City EGP 23. 3. -7. 471 547-13.9% 111 168-34.1% Cairo Overall EGP 25.5 32.3-6.8 479 544-12.% 122 176-3.5% Hurghada EGP 71. 63. 8. 154 223-31.1% 19 142-22.8% Sharm El Shaikh EGP 54. 57. -3. 314 349-1.1% 172 22-14.6% Jordan Amman JOD 54.. 4. 19 18.6% 59 55 8.% Kuwait Kuwait KWD 52. 61. -9. 15 88 19.4% 56 55 1.6% Lebanon Beirut LBP 36.. -14. 252,742 261,845-3.5% 91,663 131,91-3.1% Oman Muscat OMR 85. 71. 14. 78 81-3.5% 67 58 15.5% Qatar Doha QAR 7. 61. 9. 885 837 5.7% 621 512 21.1% Saudi Arabia Jeddah SAR 74. 73. 1. 1,19 963 5.8% 761 77 7.6% Madina SAR 82. 69. 13. 746 771-3.2% 615 535 14.9% Makkah SAR 86. 68. 18. 686 863-2.5% 595 594.3% Riyadh SAR 59. 56. 3. 837 859-2.6% 2 488 3.% United Arab Emirates Abu Dhabi AED 78. 79. -1. 81 776 3.3% 627 616 1.9% Al Ain AED 67. 67.. 479 453 5.8% 322 38 4.5% Dubai Beach AED 8. 85. -5. 1,71 1,577 8.4% 1,37 1,352 1.3% Dubai City AED 91. 92. -1. 97 871 11.4% 893 88 1.4% Dubai Overall AED 87.3 89.9-2.6 1,238 1,132 9.3% 1,81 1,18 6.2% 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: 1/214 Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 43. 57. -14. 224 198 12.7% 97 114-15.2% Egypt Cairo City US$ 23. 3. -7. 82 95-13.9% 19 29-34.1% Cairo Overall US$ 25.5 32.3-6.8 83 94-12.% 21 3-3.5% Hurghada US$ 71. 63. 8. 27 39-31.1% 19 25-22.8% Sharm El Shaikh US$ 54. 57. -3. 54 6-1.1% 3 35-14.6% Jordan Amman US$ 54.. 4. 155 154.6% 84 77 8.% Kuwait Kuwait US$ 52. 61. -9. 361 33 19.4% 19 187 1.6% Lebanon Beirut US$ 36.. -14. 167 173-3.5% 6 87-3.1% Oman Muscat US$ 85. 71. 14. 23 21-3.5% 174 151 15.5% Qatar Doha US$ 7. 61. 9. 243 23 5.7% 171 141 21.1% Saudi Arabia Jeddah US$ 74. 73. 1. 272 257 5.8% 23 189 7.6% Madina US$ 82. 69. 13. 199 26-3.2% 164 143 14.9% Makkah US$ 86. 68. 18. 183 23-2.5% 159 158.3% Riyadh US$ 59. 56. 3. 223 229-2.6% 134 13 3.% United Arab Emirates Abu Dhabi US$ 78. 79. -1. 218 211 3.3% 171 168 1.9% Al Ain US$ 67. 67.. 131 123 5.8% 88 84 4.5% Dubai Beach US$ 8. 85. -5. 466 43 8.4% 373 368 1.3% Dubai City US$ 91. 92. -1. 264 237 11.4% 243 22 1.4% Dubai Overall US$ 87.3 89.9-2.6 337 38 9.3% 294 277 6.2% 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 January) Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 43. 57. -14. 84 75 12.7% 36 43-15.2% Egypt Cairo City EGP 23. 3. -7. 471 547-13.9% 111 168-34.1% Cairo Overall EGP 25. 32. -7. 479 544-12.% 122 176-3.5% Hurghada EGP 71. 63. 8. 154 223-31.1% 19 142-22.8% Sharm El Shaikh EGP 54. 57. -3. 314 349-1.1% 172 22-14.6% Jordan Amman JOD 54.. 4. 19 18.6% 59 55 8.% Kuwait Kuwait KWD 52. 61. -9. 15 88 19.4% 56 55 1.6% Lebanon Beirut LBP 36.. -14. 252,742 261,845-3.5% 91,663 131,91-3.1% Oman Muscat OMR 85. 71. 14. 78 81-3.5% 67 58 15.5% Qatar Doha QAR 7. 61. 9. 885 837 5.7% 621 512 21.1% Saudi Arabia Jeddah SAR 74. 73. 1. 1,19 963 5.8% 761 77 7.6% Madina SAR 82. 69. 13. 746 771-3.2% 615 535 14.9% Makkah SAR 86. 68. 18. 686 863-2.5% 595 594.3% Riyadh SAR 59. 56. 3. 837 859-2.6% 2 488 3.% United Arab Emirates Abu Dhabi AED 78. 79. -1. 81 776 3.3% 627 616 1.9% Al Ain AED 67. 67.. 479 453 5.8% 322 38 4.5% Dubai Beach AED 8. 85. -5. 1,71 1,577 8.4% 1,37 1,352 1.3% Dubai City AED 91. 92. -1. 97 871 11.4% 893 88 1.4% Dubai Overall AED 87. 89. -2. 1,238 1,132 9.3% 1,81 1,18 6.2% 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 January) Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 43. 57. -14. 224 198 12.7% 97 114-15.2% Egypt Cairo City US$ 23. 3. -7. 82 95-13.9% 19 29-34.1% Cairo Overall US$ 25. 32. -7. 83 94-12.% 21 3-3.5% Hurghada US$ 71. 63. 8. 27 39-31.1% 19 25-22.8% Sharm El Shaikh US$ 54. 57. -3. 54 6-1.1% 3 35-14.6% Jordan Amman US$ 54.. 4. 155 154.6% 84 77 8.% Kuwait Kuwait US$ 52. 61. -9. 361 33 19.4% 19 187 1.6% Lebanon Beirut US$ 36.. -14. 167 173-3.5% 6 87-3.1% Oman Muscat US$ 85. 71. 14. 23 21-3.5% 174 151 15.5% Qatar Doha US$ 7. 61. 9. 243 23 5.7% 171 141 21.1% Saudi Arabia Jeddah US$ 74. 73. 1. 272 257 5.8% 23 189 7.6% Madina US$ 82. 69. 13. 199 26-3.2% 164 143 14.9% Makkah US$ 86. 68. 18. 183 23-2.5% 159 158.3% Riyadh US$ 59. 56. 3. 223 229-2.6% 134 13 3.% United Arab Emirates Abu Dhabi US$ 78. 79. -1. 218 211 3.3% 171 168 1.9% Al Ain US$ 67. 67.. 131 123 5.8% 88 84 4.5% Dubai Beach US$ 8. 85. -5. 466 43 8.4% 373 368 1.3% Dubai City US$ 91. 92. -1. 264 237 11.4% 243 22 1.4% Dubai Overall US$ 87. 89. -2. 337 38 9.3% 294 277 6.2% 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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