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.
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.
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$319 during the same period
Markets with the largest variance on a per month basis % Occupancy for Beirut Hotels 7 65 Occupancy % March 213 March 214 6 5 59 59 55 47 48 47 52 Occupancy % 4 3 4 34 36 42 41 2 1 Average Room Rate for Madina (US$) 45 4 35 396 Average room rate March 213 March 214 35 417 Average room rate 3 25 2 15 215 182 153 171 176 158 184 199 187 161 1 5 Rev PAR in Sharm El Shaikh (US$) 5 45 46 Room yield March 213 March 214 Room yield 4 35 3 25 2 26 37 37 29 37 22 29 24 26 3 27 19 15 1 5
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % 1 9 8 7 6 5 9 86 83 79 51 Occupancy % March 213 March 214 7 75 83 86 82 87 89 9 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 4 Average room rate March 213 March 214 35 3 329 313 33 333 35 337 313 319 Average room rate 25 2 15 243 192 179 213 221 1 5 Rev PAR in Dubai Overall hotels (US$) 35 Room yield March 213 March 214 3 25 294 269 274 286 251 294 278 286 Room Yield 2 15 22 152 149 165 1 91 5
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 214 213 Change 214 213 Change Bahrain Manama BHD 5. 45. 5. 77 79-2.1% 39 36 7.9% Egypt Cairo City EGP 32. 27. 5. 478 424 12.8% 156 117 33.5% Sharm El Shaikh EGP 49. 66. -17. 218 226-3.7% 19 151-28.% Jordan Amman JOD 66. 65. 1. 112 116-3.5% 75 76-1.6% Lebanon Beirut LBP 41. 59. -18. 224,534 25,464-1.4% 93,555 15,83-37.7% Qatar Doha QAR 66. 72. -6. 86 1,3-14.3% 575 727-2.9% Saudi Arabia Jeddah SAR 8. 77. 3. 929 886 4.8% 749 685 9.3% Madina SAR 82. 73. 9. 62 84-25.1% 499 587-15.1% Makkah SAR 71. 66. 5. 581 68-14.5% 416 45-7.5% Riyadh SAR 78. 67. 11. 823 845-2.6% 648 572 13.4% United Arab Emirates Abu Dhabi AED 86. 85. 1. 782 87-3.2% 674 686-1.9% Dubai Beach AED 87. 88. -1. 1,754 1,855-5.4% 1,532 1,646-6.9% Dubai City AED 91. 9. 1. 853 83 2.7% 778 751 3.7% Dubai Overall AED 89.5 89.6 -.1 1,173 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 + 971 4 332 4.
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 214 213 Change 214 213 Change Bahrain Manama US$ 5. 45. 5. 25 21-2.1% 14 96 7.9% Egypt Cairo City US$ 32. 27. 5. 83 73 12.8% 27 2 33.5% Sharm El Shaikh US$ 49. 66. -17. 38 39-3.7% 19 26-28.% Jordan Amman US$ 66. 65. 1. 159 165-3.5% 17 19-1.6% Lebanon Beirut US$ 41. 59. -18. 148 165-1.4% 62 99-37.7% Qatar Doha US$ 66. 72. -6. 236 276-14.3% 158 2-2.9% Saudi Arabia Jeddah US$ 8. 77. 3. 248 236 4.8% 2 183 9.3% Madina US$ 82. 73. 9. 161 215-25.1% 133 157-15.1% Makkah US$ 71. 66. 5. 155 181-14.5% 111 12-7.5% Riyadh US$ 78. 67. 11. 22 225-2.6% 173 152 13.4% United Arab Emirates Abu Dhabi US$ 86. 85. 1. 213 22-3.2% 183 187-1.9% Dubai Beach US$ 87. 88. -1. 478 55-5.4% 417 448-6.9% Dubai City US$ 91. 9. 1. 232 226 2.7% 212 24 3.7% Dubai Overall US$ 89.5 89.6 -.1 319 329-2.8% 286 294-2.9% 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 + 971 4 332 4.
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 214 213 Change 214 213 Change Bahrain Manama BHD 51. 48. 3. 77 78-1.% 4 38 4.7% Egypt Cairo City EGP 26. 26.. 463 497-6.9% 12 134-9.8% Cairo Overall EGP 27. 28. -1. 472 52-6.1% 13 144-9.4% Hurghada EGP 65. 63. 2. 152 2-24.2% 99 128-22.5% Sharm El Shaikh EGP 55. 59. -4. 279 35-8.5% 154 181-14.8% Jordan Amman JOD 61. 58. 3. 111 112 -.3% 68 65 5.% Kuwait Kuwait KWD 52. 62. -1. 15 88 19.3% 55 55 -.7% Lebanon Beirut LBP 39. 56. -17. 237,111 254,616-6.9% 94,528 144,416-34.5% Oman Muscat OMR 88. 82. 6. 86 86.1% 77 71 8.2% Qatar Doha QAR 7. 65. 5. 866 915-5.3% 67 63.7% Saudi Arabia Jeddah SAR 77. 76. 1. 1,3 95 5.6% 778 723 7.7% Madina SAR 83. 75. 8. 74 762-7.6% 586 573 2.2% Makkah SAR 84. 73. 11. 639 765-16.6% 537 56-4.1% Riyadh SAR 71. 64. 7. 83 85-2.4% 591 55 7.5% United Arab Emirates Abu Dhabi AED 82. 83. -1. 793 867-8.5% 654 725-9.7% Al Ain AED 7. 72. -2. 529 518 2.1% 373 378-1.1% Dubai Beach AED 83. 87. -4. 1,661 1,611 3.1% 1,395 1,46 -.8% Dubai City AED 91. 91.. 919 859 7.% 842 786 7.2% Dubai Overall AED 88. 89. -1. 1,188 1,138 4.3% 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 + 971 4 332 4.
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 214 213 Change 214 213 Change Bahrain Manama US$ 51. 48. 3. 24 26-1.% 15 1 4.7% Egypt Cairo City US$ 26. 26.. 8 86-6.9% 21 23-9.8% Cairo Overall US$ 27. 28. -1. 82 87-6.1% 23 25-9.4% Hurghada US$ 65. 63. 2. 26 35-24.2% 17 22-22.5% Sharm El Shaikh US$ 55. 59. -4. 48 53-8.5% 27 31-14.8% Jordan Amman US$ 61. 58. 3. 158 158 -.3% 97 92 5.% Kuwait Kuwait US$ 52. 62. -1. 359 31 19.3% 188 189 -.7% Lebanon Beirut US$ 39. 56. -17. 156 168-6.9% 62 95-34.5% Oman Muscat US$ 88. 82. 6. 225 224.1% 199 184 8.2% Qatar Doha US$ 7. 65. 5. 238 251-5.3% 167 166.7% Saudi Arabia Jeddah US$ 77. 76. 1. 268 253 5.6% 28 193 7.7% Madina US$ 83. 75. 8. 188 23-7.6% 156 153 2.2% Makkah US$ 84. 73. 11. 17 24-16.6% 143 149-4.1% Riyadh US$ 71. 64. 7. 221 227-2.4% 158 147 7.5% United Arab Emirates Abu Dhabi US$ 82. 83. -1. 216 236-8.5% 178 197-9.7% Al Ain US$ 7. 72. -2. 144 141 2.1% 12 13-1.1% Dubai Beach US$ 83. 87. -4. 452 439 3.1% 38 383 -.8% Dubai City US$ 91. 91.. 25 234 7.% 229 214 7.2% Dubai Overall US$ 88. 89. -1. 323 31 4.3% 286 278 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 + 971 4 332 4.
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 1923. 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