Benchmark Middle East hotel benchmark survey report June 215 The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated
Yousef Wahbah Partner and Head of MENA Transaction Real Estate, Ernst & Young Middle East, UAE EY Middle East hotel benchmark survey We hope you enjoy the June 215 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. The 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 nancial 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 organi ation in the Middle East with 2 of ces in 15 countries and is part of the global EY organization with more than 19, people in 15 countries. Page 3: June 215 key performance highlights Page 4: We have highlighted the largest variance on a per-month basis for the various markets over the last12-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 12 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 dollars Page 8: Year-to-date performance of various markets compared to the previous year. In local currency Page 9: Year-to-date performance of various markets compared to the previous year. In US dollars 2 Benchmark June 215
June 215 Key Performance Highlights Hospitality markets in Makkah, Cairo and Jeddah witnessed a positive increase when compared to the same period last year Makkah s hospitality market witnessed a triple digit increase in RevPAR of 178.6% in June 215 when compared to same period last year, this was mainly due to the increase in ADR from US$159 in June 214 to US$412 in June 215. Furthermore, Arab news announced 14 million worshippers and pilgrims have visited Makkah in the rst half of Ramadan, totaling an increase of 4% when compared to the same period last year. In June 215, Cairo s hospitality market witnessed an increase in occupancy from 35.% in June 214 to 42.% in June 215. The increase in occupancy was coupled with a jump in ADR from US$9 in June 214 to US$18 in June 215, resulting in a rise in RevPAR by 42.5% in June 215 when compared to the same period last year. Jeddah s hospitality market witnessed an increase in average occupancy from 78.% in June 214 to 84.% in June 215, which resulted in an increase in RevPAR by 12.8% from US$236 in June 214 to US$266 in June 215, this may be ascribed to the many believers who traveled through Jeddah to visit the Holy City of Makkah. Dubai and Abu Dhabi s hospitality market witnessed a drop in RevPAR performance when compared to June 214 With the start of the Holy month of Ramadan and the cities typical summer season both Dubai and Abu Dhabi s hospitality market witnessed a dip in key performance indicators. Hotels across Dubai witnessed a drop in RevPAR by 1.7% in June 215 when compared to the same period last year, this was mainly due to the decrease in occupancy from 77.5% in June 214 to 68.3% in June 215. In June 215, Abu Dhabi s hospitality market witnessed a decrease in RevPAR from US$99 in June 214 to US$74 in June 215. Occupancy also fell by 13.% in June 215 when compared to the same period last year. Kuwait and Amman s hospitality market performance dropped when compared to June 214 Manama s hospitality market witnessed a decrease in RevPAR of 1.9% in June 215 when compared to June 214, this was mainly due to ADR dropping from US$233 in June 214 to US$212 in June 215, coupled by a slump in average occupancy of 1.% in June 215 when compared to the same time last year. In June 215, Jeddah s hospitality market witnessed a decrease in occupancy by 5.% when compared to the same period last year. ADR dropped from US$279 in June 214 to US$268 in June 215, which resulted in a drop in RevPAR from US$218 in June 214 to US$198 in June 215, this may be endorsed from vacationing Saudis ensued ahead of Ramadan. Benchmark 3
Markets with the largest variance on % Occupancy for Cairo Hotels 7 Occupancy % June 214 June 215 6 6 Occupancy % 5 4 3 35 22 52 42 5 4 46 49 45 45 49 42 2 1 Average Room Rate for Jeddah (US$) Average room rate 35 3 25 2 15 3 279 267 285 291 Average room rate June 214 June 215 248 244 248 257 264 257 268 315 1 5 RevPAR in Amman (US$) 14 Room yield June 214 June 215 12 123 Room yield 1 8 6 53 14 96 9 91 76 68 79 89 95 1 82 4 2 4 Benchmark June 215
Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % June 214 June 215 Occupancy % 9 8 7 6 5 78 46 74 77 83 86 82 87 88 88 84 85 68 4 3 2 1 Average room rate for Dubai Overall hotels (US$) Average room rate June 214 June 215 35 3 32 39 297 321 296 33 289 Average room rate 25 2 15 172 174 195 21 227 174 1 5 RevPAR in Dubai Overall hotels (US$) 3 25 265 265 Room yield June 214 June 215 242 278 259 265 243 2 194 Room yield 15 133 144 155 119 1 81 5 Benchmark 5
Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: June 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 39. 5. 11. 74 87 14.7% 29 44 34.6% Egypt Cairo City EGP 42. 35. 7. 621 517 2.1% 262 184 42.5% Jordan Amman JOD 52. 72. 2. 19 119 8.7% 57 87 33.6% Kuwait Kuwait KWD 38. 47. 9. 69 71 3.5% 26 34 22.1% Lebanon Beirut LBP 57. 68. 11. 275,44 275,433.% 157,868 188,825 16.4% Qatar Doha QAR 59. 75. 16. 769 833 7.7% 461 633 27.2% Saudi Arabia Jeddah SAR 84. 78. 6. 1,18 1,125 4.9% 998 884 12.8% Madina SAR 72. 73. 1. 892 569 56.8% 645 42 53.4% Makkah SAR 53. 49. 4. 1,544 596 158.9% 822 295 178.6% Riyadh SAR 59. 6. 1. 786 961 18.3% 466 578 19.3% United Arab Emirates Abu Dhabi AED 64. 77. 13. 425 47 9.6% 274 365 25.% Dubai Beach AED 71. 77. 6. 878 798 1.1% 628 617 1.6% Dubai City AED 66. 77. 11. 492 538 8.5% 325 417 22.% Dubai Overall AED 68.3 77.5 9.2 639 63 1.4% 436 488 1.7% 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 of ce 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, we have not performed an audit or review of the information gathered and do 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 of ce at + 971 4 332 4. 6 Benchmark June 215
Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: June 215 Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama US$ 39. 5. 11. 197 231 14.7% 77 118 34.6% Egypt Cairo City US$ 42. 35. 7. 18 9 2.1% 45 32 42.5% Jordan Amman US$ 52. 72. 2. 155 17 8.7% 82 123 33.6% Kuwait Kuwait US$ 38. 47. 9. 235 244 3.5% 9 115 22.1% Lebanon Beirut US$ 57. 68. 11. 182 182.% 14 125 16.4% Qatar Doha US$ 59. 75. 16. 212 229 7.7% 127 174 27.2% Saudi Arabia Jeddah US$ 84. 78. 6. 315 3 4.9% 266 236 12.8% Madina SAR 72. 73. 1. 238 152 56.8% 172 112 53.4% Makkah SAR 53. 49. 4. 412 159 158.9% 219 79 178.6% Riyadh US$ 59. 6. 1. 21 256 18.3% 124 154 19.3% United Arab Emirates Abu Dhabi US$ 64. 77. 13. 116 128 9.6% 74 99 25.% Dubai Beach US$ 71. 77. 6. 239 217 1.1% 171 168 1.6% Dubai City US$ 66. 77. 11. 134 147 8.5% 89 114 22.% Dubai Overall US$ 68.3 77.5 9.2 174 172 1.4% 119 133 1.7% 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 of ce 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 do 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 of ce at + 971 4 332 4. Benchmark 7
(local currency) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 47. 5. 3. 74 8 7.% 36 41 12.7% Egypt Cairo City EGP 48. 32. 16. 6 46 3.5% 293 15 95.% Jordan Amman JOD 54. 66. 12. 19 116 6.1% 6 77 22.4% Kuwait Kuwait KWD 55. 54. 1. 8 85 5.7% 44 46 3.8% Lebanon Beirut LBP 56. 5. 6. 266,15 254,461 4.6% 149,35 127,465 17.1% Qatar Doha QAR 74. 73. 1. 913 859 6.3% 679 628 8.2% Saudi Arabia Jeddah SAR 75. 77. 2. 1,1 983 2.7% 767 764.4% Madina SAR 78. 78.. 738 67 21.6% 578 475 21.7% Makkah SAR 52. 63. 11. 51 34 49.9% 267 215 24.3% Riyadh SAR 68. 68.. 812 878 7.6% 559 598 6.5% United Arab Emirates Abu Dhabi AED 79. 81. 2. 726 713 1.8% 576 582 1.2% Dubai Beach AED 83. 81. 2. 1,469 1,547 5.1% 1,222 1,264 3.3% Dubai City AED 83. 86. 3. 726 795 8.8% 65 69 12.4% Dubai Overall AED 83. 84. 1. 999 1,63 6.% 831 92 7.8% 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 of ce 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, we have not performed an audit or review of the information gathered and do 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 of ce at + 971 4 332 4. 8 Benchmark June 215
(US dollars) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama US$ 47. 5. 3. 197 212 7.% 94 18 12.7% Egypt Cairo City US$ 48. 32. 16. 14 8 3.5% 51 26 95.% Jordan Amman US$ 54. 66. 12. 155 165 6.1% 85 11 22.4% Kuwait Kuwait US$ 55. 54. 1. 273 29 5.7% 151 157 3.8% Lebanon Beirut US$ 56. 5. 6. 176 168 4.6% 99 84 17.1% Qatar Doha US$ 74. 73. 1. 251 236 6.3% 187 173 8.2% Saudi Arabia Jeddah SAR 75. 77. 2. 269 262 2.7% 25 24.4% Madina SAR 78. 78.. 197 162 21.6% 154 127 21.7% Makkah SAR 52. 63. 11. 136 91 49.9% 71 57 24.3% Riyadh SAR 68. 68.. 217 234 7.6% 149 159 6.5% United Arab Emirates Abu Dhabi US$ 79. 81. 2. 198 194 1.8% 157 159 1.2% Dubai Beach US$ 83. 81. 2. 4 421 5.1% 333 344 3.3% Dubai City US$ 83. 86. 3. 198 217 8.8% 165 188 12.4% Dubai Overall US$ 83. 84. 1. 272 29 6.% 226 246 7.8% 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 of ce 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 do 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 of ce at + 971 4 332 4. Benchmark 9
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