Benchmark Middle East Hotel Benchmark Survey Report October 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 October 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: October 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.
October 213 Key Performance Highlights The hospitality market in Egypt continues to under perform into the final quarter of the year due to the continued political unrest in the country In October 213, the overall hospitality market in Egypt has seen sharp declines in RevPAR. Cairo city s RevPAR decreased by 71.8% in October 213 compared to the same period last year. Average occupancy in the city dropped from 47% in October 212 to 16% in October 213, coupled by a decrease in ADR of 18.8% during the same period. Hurghada and Sharm El Shaikh hospitality market has recorded a drop in RevPAR of approximately 51.% and 43.3% respectively, mainly due to a significant slowdown in visitors. Occupancy in Hurghada has declined from 81% in October 212 to 45% in October 213 and Sharm El Shaikh s occupancy dived by approximately 27% during the same period. It should be noted, Hurghada has recorded an increase in RevPAR of 7.2% year to date when compared to the same period last year. Kuwait and Saudi Arabia s hospitality markets have registered a decline in RevPAR in October 213 compared to October 212 In October 213, Kuwait s RevPAR decreased by 44.1% as compared to October 212 figures, this was mainly due to low occupancy rates in October 213 which averaged 44% compared to 64% in October 212, coupled by a drop in ADR from US$362 to US$289 during the same period. Based on our research, approximately 753 new room (mix of 5 and 4 star hotels) have come online in Q2 and Q3 of 213, due to the supply increased of high end hotel rooms, average occupancy and ADR has dropped compared to the previous year. Saudi Arabia witness a slight decline in RevPAR in October 213, with the holy city of Makkah registering the biggest drop of 25.8% as compared to the same period last year. This was due to the fact that the Kingdom has declared 7 September 213 as the first day Pilgrims can arrive in the country and Eid Al Adha being celebrated on 15 October 213. While in 212, Pilgrims first day of arrival was 27 September 212 with Eid Al Adha being celebrated on 25 October 212. UAE s hospitality market witness positive RevPAR growth in October 213 Dubai s overall average occupancy decreased by approximately 3.2% in October 213 compared to October 212, however, ADR increased by 7.%, resulting in a healthy increase in RevPAR of approximately 3.1%. In October 213, Dubai s hospitality market performance improved month over month, with ADR increasing from US$221 in September 213 to US$33 in October 213, which was also coupled with an increase in average occupancy of 8% during the same period. Abu Dhabi witnessed an increase in ADR in October 213, from US$229 to US$248 year on year, resulting in RevPAR growth of 1.7% during the same period. Al Ain recorded a healthy increase in RevPAR of 33.8% in October 213, due to an increase in average occupancy of 6.% when compared to the same period last year, which was coupled with a jump in ADR from US$146 in October 212 to US$181 in October 213.
Markets with the largest variance on a per month basis % Occupancy for Hurghada Hotels Occupancy % 1 9 8 7 6 5 4 3 2 1 81 88 62 63 59 Occupancy % 71 86 74 71 72 58 36 45 Average Room Rate for Kuwait (US$) Average room rate 4 35 3 25 2 15 362 266 251 33 313 Average room rate 277 31 278 313 255 39 285 289 1 5 Rev PAR in Cairo City (US$) 5 45 4 46 42 Room yield Room yield 35 3 25 2 27 29 18 2 24 29 32 15 1 5 11 11 1 13
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % 1 9 8 7 6 5 87 91 84 9 9 9 Occupancy % 86 83 79 51 7 75 83 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 35 3 32 39 285 313 298 Average room rate 328 313 33 Average room rate 25 2 15 243 192 179 213 221 1 5 Rev PAR in Dubai Overall hotels (US$) 35 Room yield 3 25 261 281 238 282 267 295 269 274 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: 1/213 Currency: Local Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama BHD 46. 41. 5. 75 76 -.6% 35 32 1.4% Egypt Cairo City EGP 16. 47. -31. 453 557-18.8% 74 264-71.8% Cairo Overall EGP 18.3 48.4-3.2 474 552-14.1% 87 267-67.6% Hurghada EGP 45. 81. -36. 233 263-11.2% 15 215-51.% Sharm El Shaikh EGP 57. 84. -27. 286 343-16.6% 165 291-43.3% Jordan Amman JOD 63. 69. -6. 18 15 2.9% 69 73-6.% Kuwait Kuwait KWD 44. 64. -2. 84 15-2.1% 38 68-44.1% Lebanon Beirut LBP 48. 39. 9. 265,218 28,146-5.3% 128,89 111,569 14.8% Oman Muscat OMR 73. 69. 4. 84 86-2.1% 62 6 3.2% Qatar Doha QAR 66. 7. -4. 925 957-3.3% 617 677-8.9% Saudi Arabia Jeddah SAR 78. 77. 1. 1,9 1,31-2.1% 792 796 -.5% Madina SAR 71. 76. -5. 1,562 1,599-2.3% 1,116 1,231-9.3% Makkah SAR 69. 85. -16. 1,961 2,141-8.4% 1,364 1,839-25.8% Riyadh SAR 5. 48. 2. 785 837-6.2% 397 47-2.3% United Arab Emirates Abu Dhabi AED 81. 79. 2. 91 841 8.2% 743 671 1.7% Al Ain AED 75. 69. 6. 665 538 23.7% 52 375 33.8% Dubai Beach AED 78. 86. -8. 1,771 1,546 14.6% 1,393 1,341 3.9% Dubai City AED 86. 85. 1. 872 858 1.7% 753 736 2.3% Dubai Overall AED 83.2 86.4-3.2 1,211 1,131 7.% 1,7 977 3.1% 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: 1/213 Currency: US$ Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama US$ 46. 41. 5. 2 22 -.6% 93 85 1.4% Egypt Cairo City US$ 16. 47. -31. 78 97-18.8% 13 46-71.8% Cairo Overall US$ 18.3 48.4-3.2 82 96-14.1% 15 46-67.6% Hurghada US$ 45. 81. -36. 4 46-11.2% 18 37-51.% Sharm El Shaikh US$ 57. 84. -27. 5 6-16.6% 29 5-43.3% Jordan Amman US$ 63. 69. -6. 154 15 2.9% 98 14-6.% Kuwait Kuwait US$ 44. 64. -2. 289 362-2.1% 129 232-44.1% Lebanon Beirut US$ 48. 39. 9. 175 185-5.3% 85 74 14.8% Oman Muscat US$ 73. 69. 4. 218 223-2.1% 16 155 3.2% Qatar Doha US$ 66. 7. -4. 254 263-3.3% 17 186-8.9% Saudi Arabia Jeddah US$ 78. 77. 1. 269 275-2.1% 211 212 -.5% Madina US$ 71. 76. -5. 417 426-2.3% 298 328-9.3% Makkah US$ 69. 85. -16. 523 571-8.4% 364 49-25.8% Riyadh US$ 5. 48. 2. 29 223-6.2% 16 18-2.3% United Arab Emirates Abu Dhabi US$ 81. 79. 2. 248 229 8.2% 22 183 1.7% Al Ain US$ 75. 69. 6. 181 146 23.7% 137 12 33.8% Dubai Beach US$ 78. 86. -8. 482 421 14.6% 379 365 3.9% Dubai City US$ 86. 85. 1. 238 234 1.7% 25 2 2.3% Dubai Overall US$ 83.2 86.4-3.2 33 38 7.% 274 266 3.1% 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 October) Currency: Local Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama BHD 42. 37. 5. 78 79-1.3% 33 29 12.2% Egypt Cairo City EGP 22. 38. -16. 496 49 1.2% 114 188-39.4% Cairo Overall EGP 24. 4. -16. 55 488 3.6% 124 196-36.5% Hurghada EGP 63. 72. -9. 22 18 22.1% 141 131 7.2% Sharm El Shaikh EGP 65. 75. -1. 38 263 16.9% 21 198 1.7% Jordan Amman JOD 61. 72. -11. 11 16 3.5% 68 77-11.2% Kuwait Kuwait KWD 57. 53. 4. 86 87-1.7% 49 47 4.8% Lebanon Beirut LBP 51. 56. -5. 254,323 39,68-17.9% 131,31 174,857-24.9% Oman Muscat OMR 66. 66.. 81 78 3.1% 53 52 2.9% Qatar Doha QAR 64. 65. -1. 919 941-2.3% 596 612-2.6% Saudi Arabia Jeddah SAR 79. 8. -1. 1,4 935 11.2% 832 755 1.1% Madina SAR 66. 69. -3. 98 9.9% 64 63-4.1% Makkah SAR 72. 8. -8. 1,195 1,179 1.4% 865 948-8.7% Riyadh SAR 58. 56. 2. 824 846-2.5% 484 478 1.4% United Arab Emirates Abu Dhabi AED 76. 74. 2. 744 691 7.8% 566 518 9.3% Al Ain AED 71. 63. 8. 517 53 2.8% 372 319 16.6% Dubai Beach AED 77. 77.. 1,342 1,245 7.8% 1,37 969 7.% Dubai City AED 8. 8.. 781 735 6.3% 633 591 7.1% Dubai Overall AED 79. 79.. 99 927 6.8% 788 736 7.% 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 October) Currency: US$ Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama US$ 42. 37. 5. 26 29-1.3% 87 77 12.2% Egypt Cairo City US$ 22. 38. -16. 86 85 1.2% 2 33-39.4% Cairo Overall US$ 24. 4. -16. 88 85 3.6% 22 34-36.5% Hurghada US$ 63. 72. -9. 38 31 22.1% 24 23 7.2% Sharm El Shaikh US$ 65. 75. -1. 53 46 16.9% 35 34 1.7% Jordan Amman US$ 61. 72. -11. 156 151 3.5% 97 19-11.2% Kuwait Kuwait US$ 57. 53. 4. 294 299-1.7% 168 161 4.8% Lebanon Beirut US$ 51. 56. -5. 168 24-17.9% 87 115-24.9% Oman Muscat US$ 66. 66.. 29 23 3.1% 138 134 2.9% Qatar Doha US$ 64. 65. -1. 253 259-2.3% 164 168-2.6% Saudi Arabia Jeddah US$ 79. 8. -1. 277 249 11.2% 222 21 1.1% Madina US$ 66. 69. -3. 242 24.9% 161 168-4.1% Makkah US$ 72. 8. -8. 319 314 1.4% 231 253-8.7% Riyadh US$ 58. 56. 2. 22 225-2.5% 129 127 1.4% United Arab Emirates Abu Dhabi US$ 76. 74. 2. 23 188 7.8% 154 141 9.3% Al Ain US$ 71. 63. 8. 141 137 2.8% 11 87 16.6% Dubai Beach US$ 77. 77.. 366 339 7.8% 282 264 7.% Dubai City US$ 8. 8.. 213 2 6.3% 172 161 7.1% Dubai Overall US$ 79. 79.. 27 252 6.8% 215 21 7.% 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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