Benchmark Middle East Hotel Benchmark Survey Report April 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 April 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: April 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.
April 214 Key Performance Highlights Hospitality markets in Jeddah, Riyadh and Makkah have witnessed a positive increase in occupancy Makkah s hospitality market has witnessed an increase in occupancy of 8.% during April 214 compared to the same period last year, however have recorded a decrease in ADR of 17.5%, which resulted in a drop in RevPAR of 7.8% during the same period In April 214, Jeddah s average occupancy levels increased by 2.% from April 213, coupled by a jump in ADR of 11.2% during the same period, from US$235 in April 213 to US$262 in April 214. As per the Saudi Commission for Tourism & Antiquities (SCTA) Jeddah is experiencing healthier number of tourists due to the continuous growth of religious Hajj and Umrah tourism The Riyadh Travel Fair 214 which began on the 15th of April 214 had a positive impact on Riyadh s hospitality market which were reflected by the 1.% jump in average occupancy compared to April last year. RevPAR increased by 8.1% during the same period, despite a slight decrease in ADR from US$229 in April 213 to US$218 in April 214 Beirut and Sharm El Sheikh s hospitality market witness double figure sliding Due to Lebanon s unstable political situation, Beirut has witnessed a decrease in RevPAR of 24.4% in April 214 compared to April 213, the decline in RevPAR was due to the continued drop in average occupancy levels of 12.%, coupled by a decrease in ADR from US$168 in April 213 to US$156 in April 214 Although Cairo is relatively isolated from Sharm El Sheikh it still had an impact on tourism on the Red Sea resort. There has been a decrease in Sharm El Sheikh average occupancy of 15.% in April 214 compared to April 213 as we all as a drop of 4.5% in the ADR during the same period, resulting in a decline in RevPAR of 23.5% UAE s overall hospitality market sees growth in April 214 Dubai s overall average occupancy levels have remained stable at approximately 85.% in both April 213 and 214 even given the notable increase in room supply over the last year. The positive occupancy levels were coupled by an increase in ADR from US$38 in April 213 to US$327 in April 214, resulting in an increase in RevPAR of 5.6% during the same period April 214 ADR in Dubai, while higher than March 214 rates, average occupancy levels dropped from 9% in March 214 to 84% in April 214. The slight month over month decrease in occupancy from March to April is in line with the market s typical seasonality, as tourism inflows begin to slow towards the hot summer months and Ramadan in June/July
Markets with the largest variance on a per month basis % Occupancy for Sharm El Shaikh Hotels Occupancy % 8 7 6 5 4 3 76 65 72 62 63 Occupancy % April 213 April 214 45 57 57 6 54 58 49 61 2 1 Average Room Rate for Makkah (US$) 7 6 66 613 Average room rate April 213 April 214 523 Average room rate 5 4 3 2 169 168 25 186 243 25 183 166 155 139 1 Rev PAR in Beirut (US$) Room yield 12 1 8 6 4 18 98 11 67 86 Room yield April 213 April 214 56 85 8 94 6 65 62 82 2
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels 1 Occupancy % April 213 April 214 Occupancy % 9 8 7 6 5 85 83 79 51 7 75 83 86 82 87 89 9 84 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 4 Average room rate April 213 April 214 35 3 38 33 333 35 337 313 319 327 Average room rate 25 2 15 243 192 179 213 221 1 5 Rev PAR in Dubai Overall hotels (US$) 35 Room yield April 213 April 214 3 25 262 274 286 251 294 278 286 276 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: 4/214 Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 52. 49. 3. 81 92-12.9% 42 46-7.9% Egypt Cairo City EGP 35. 33. 2. 45 448.5% 16 151 6.% Sharm El Shaikh EGP 61. 76. -15. 24 251-4.5% 147 192-23.5% Jordan Amman JOD 71. 67. 4. 111 11 1.7% 8 74 7.9% Lebanon Beirut LBP 52. 64. -12. 236,2 254,398-7.2% 124,237 164,249-24.4% Qatar Doha QAR 76. 72. 4. 837 837.1% 642 69 5.4% Saudi Arabia Jeddah SAR 79. 77. 2. 981 882 11.2% 776 687 12.9% Madina SAR 8. 66. 14. 562 645-12.8% 451 428 5.6% Makkah SAR 77. 69. 8. 523 634-17.5% 45 439-7.8% Riyadh SAR 8. 7. 1. 818 859-4.8% 655 66 8.1% United Arab Emirates Abu Dhabi AED 84. 8. 4. 816 815.1% 69 659 4.7% Dubai Beach AED 81. 84. -3. 1,998 1,818 9.9% 1,638 1,545 6.% Dubai City AED 85. 85.. 788 745 5.7% 677 64 5.9% Dubai Overall AED 84.3 85.1 -.7 1,23 1,13 6.5% 1,14 961 5.6% 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 monthly performance (US dollar) EY Middle East Hotel Benchmark Survey Monthly performance: 4/214 Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 52. 49. 3. 214 245-12.9% 112 122-7.9% Egypt Cairo City US$ 35. 33. 2. 78 78.5% 28 26 6.% Sharm El Shaikh US$ 61. 76. -15. 42 44-4.5% 25 33-23.5% Jordan Amman US$ 71. 67. 4. 158 156 1.7% 114 16 7.9% Lebanon Beirut US$ 52. 64. -12. 156 168-7.2% 82 18-24.4% Qatar Doha US$ 76. 72. 4. 23 23.1% 177 167 5.4% Saudi Arabia Jeddah US$ 79. 77. 2. 262 235 11.2% 27 183 12.9% Madina US$ 8. 66. 14. 15 172-12.8% 12 114 5.6% Makkah US$ 77. 69. 8. 139 169-17.5% 18 117-7.8% Riyadh US$ 8. 7. 1. 218 229-4.8% 175 162 8.1% United Arab Emirates Abu Dhabi US$ 84. 8. 4. 222 222.1% 188 179 4.7% Dubai Beach US$ 81. 84. -3. 544 495 9.9% 446 421 6.% Dubai City US$ 85. 85.. 214 23 5.7% 184 174 5.9% Dubai Overall US$ 84.3 85.1 -.7 327 38 6.5% 276 262 5.6% 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 (Local currency) EY Middle East Hotel Benchmark Survey Year over Year performance (January April) 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. 78 81-4.4% 4 4 1.% Egypt Cairo City EGP 27. 28. -1. 46 487-5.6% 127 136-6.9% Sharm El Shaikh EGP 56. 61. -5. 273 295-7.6% 153 183-16.1% Jordan Amman JOD 63. 6. 3. 111 111.2% 71 67 5.8% Lebanon Beirut LBP 42. 58. -16. 236,793 254,559-7.% 11,468 149,49-31.9% Qatar Doha QAR 71. 67. 4. 859 897-4.2% 614 64 1.7% Saudi Arabia Jeddah SAR 77. 76. 1. 998 936 6.7% 778 715 8.8% Madina SAR 82. 73. 9. 684 746-8.4% 566 552 2.6% Makkah SAR 82. 72. 1. 617 74-16.7% 51 536-4.7% Riyadh SAR 73. 66. 7. 826 852-3.1% 68 564 7.9% United Arab Emirates Abu Dhabi AED 82. 82.. 799 855-6.6% 663 79-6.5% Dubai Beach AED 83. 86. -3. 1,739 1,659 4.8% 1,452 1,439.9% Dubai City AED 9. 9.. 887 831 6.7% 799 748 6.8% Dubai Overall AED 87. 88. -1. 1,191 1,136 4.8% 1,42 1,6 3.6% 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 April) 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. 27 216-4.4% 17 16 1.% Egypt Cairo City US$ 27. 28. -1. 8 84-5.6% 22 24-6.9% Sharm El Shaikh US$ 56. 61. -5. 47 51-7.6% 27 32-16.1% Jordan Amman US$ 63. 6. 3. 158 158.2% 11 95 5.8% Lebanon Beirut US$ 42. 58. -16. 156 168-7.% 67 98-31.9% Qatar Doha US$ 71. 67. 4. 236 247-4.2% 169 166 1.7% Saudi Arabia Jeddah US$ 77. 76. 1. 266 25 6.7% 27 191 8.8% Madina US$ 82. 73. 9. 182 199-8.4% 151 147 2.6% Makkah US$ 82. 72. 1. 165 197-16.7% 136 143-4.7% Riyadh US$ 73. 66. 7. 22 227-3.1% 162 15 7.9% United Arab Emirates Abu Dhabi US$ 82. 82.. 218 233-6.6% 181 193-6.5% Dubai Beach US$ 83. 86. -3. 473 452 4.8% 395 392.9% Dubai City US$ 9. 9.. 241 226 6.7% 218 24 6.8% Dubai Overall US$ 87. 88. -1. 324 39 4.8% 284 274 3.6% 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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