Benchmark Middle East Hotel Benchmark Survey Report January 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 Ernst & Young Middle East Hotel Benchmark Survey We hope you enjoy the January 213 report of the Ernst & Young 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. Ernst & Young s 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. Ernst & Young is the largest professional services firm in Middle East with 18 offices in 13 countries and part of the global Ernst & Young network with over 167, people in 14 countries. Sincerely Yousef Wahbah Partner and Head of MENA Transaction Real Estate Page 3: January 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 room yield Page 5: Dubai overall occupancy, average room rate and room 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 213 Key Performance Highlights Hospitality market witnesses positive increase(s) in Egypt and Bahrain During the month of January this year, Hurghada s average Occupancy amounted to 63%, an increase of approximately 2% from the previous year. This increase in Occupancy was due to the relative political improvement in the region. The increase in Hurghada s average Occupancy is coupled with an increase of 14.1% in Average room rate during the same period, resulting in an increase in Rev PAR of approximately 64.9%, the largest increase in Middle East based on our survey. Hurghada s peak season is between the months of December to March, it is worth noting that during the month of September 212, Hurghada s attained an average Occupancy of 89%, the largest during the year. It should be noted, Egypt overall has experienced positive increase in its hospitality market for the month of January 213 compared to the previous year, due to the relative improvement of the political stabilization of the country as shown in the Various markets monthly performance section of our report. Furthermore, it is worth mentioning Manama, Bahrain has also witnessed positive increase in its hospitality market during the same period, due to the improved level of security in the country, this is demonstrated by a 42.3% increase in Rev PAR during January 213. Political instability negatively impacted Lebanon and Jordan hospitality market During the month of January this year, Beirut had witnessed the largest decrease in Average room rate in the Middle East of 27.2% based on our survey. During the 12 month period, Average room rate decreased from USD229 to USD167. Average Occupancy has dropped by 11.% during the same period, resulting in the largest decrease in Rev PAR of 41.2%. The decrease in Beirut s hospitality market is attributed to the political unrest in neighboring Syria, as well as the fragility of Lebanon s own internal security. As shown in the table on the following, Average room rate decreased at a steady slope in the previous year and would continue to slide if the political instability in the region carries on. It is worth mentioning Lebanon s other neighboring country Jordan has recorded lower levels of average Occupancy, dropping from 68% during January 212 to 5% in January 213, resulting in a decrease in Rev PAR of 2.3%. Dubai hospitality market sees positive growth during January 213 Dubai s average Occupancy in January 213 increased by approximately 6% from the previous month and 2% for the previous year. The increase in Occupancy was coupled with an even bigger jump in Average room rate. During the same month, Average room rate in Dubai amounted to USD313 compared to USD274 in January 212. Furthermore, Average room rate during the month increased by approximately 1% compared to the previous month as shown in Dubai overall monthly performance section of our report.
Markets with the largest variance on a per month basis % Occupancy Hurghada Hotels 1 Occupancy % January 212 January 213 Occupancy % 9 8 7 6 5 4 44 49 62 73 7 73 86 82 89 81 88 62 63 3 2 1 Average Room Rate Beirut Hotels (US$) 25 229 Average Room Rate January 212 January 213 Average Room Rate 2 15 1 23 2 28 2 22 191 179 169 171 159 167 167 5 Rev PAR in Hurghada Overall Hotels (US$) 4 Room Yield January 212 January 213 37 35 3 28 32 29 33 Room Yield 25 2 15 17 15 16 24 2 19 2 25 1 5
Dubai overall monthly performance % Occupancy Dubai Overall Hotels Occupancy % 1 9 8 7 6 5 4 88 88 89 86 Occupancy % January 212 January 213 79 78 73 69 62 87 91 84 9 3 2 1 Average Room Rate Dubai Overall Hotels (US$) 35 Average Room Rate January 212 January 213 3 274 268 28 29 32 39 285 313 Average Room Rate 25 2 15 24 174 167 188 24 1 5 Rev PAR in Dubai Overall Hotels (US$) 3 25 241 235 25 249 Room Yield January 212 January 213 261 281 238 282 Room Yield 2 15 161 135 116 117 148 1 5
Various markets monthly performance (Local Currency) Ernst & Young 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 57. 34. 23. 75 86-13.2% 43 3 42.5% Egypt Cairo City EGP 3. 24. 6. 547 54 1.3% 168 131 28.1% Cairo Overall EGP 32.3 26.4 5.9 544 527 3.1% 176 139 26.1% Hurghada EGP 63. 43. 2. 223 196 14.1% 142 86 64.9% Sharm El Shaikh EGP 64. 59. 5. 329 279 17.8% 211 167 26.5% Jordan Amman JOD 5. 68. -18. 18 1 7.9% 55 68-2.3% Kuwait Kuwait KWD 61. 54. 7. 88 78 13.7% 55 42 29.3% Lebanon Beirut LBP 49. 6. -11. 252,496 347,72-27.2% 123,782 21,54-41.2% Oman Muscat OMR 71. 75. -4. 81 8 1.% 58 61-4.5% Qatar Doha QAR 69. 65. 4. 895 96-6.8% 624 63-1.% Saudi Arabia Jeddah SAR 73. 75. -2. 963 888 8.4% 77 673 5.% Madina SAR 69. 62. 7. 771 678 13.8% 535 421 27.2% Makkah SAR 82. 81. 1. 937 859 9.1% 777 72 1.8% Riyadh SAR 56. 55. 1. 859 914-6.% 488 54-3.2% United Arab Emirates Abu Dhabi AED 78. 78.. 797 861-7.4% 624 678-7.9% Al Ain AED 67. 51. 16. 453 529-14.3% 38 272 13.1% Dubai Beach AED 85. 83. 2. 1,558 1,463 6.5% 1,337 1,218 9.8% Dubai City AED 92. 9. 2. 913 837 9.1% 846 756 11.8% Dubai Overall AED 9. 87.5 2.4 1,151 1,72 7.4% 1,36 938 1.4% 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 Ernst & Young 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, Ernst & Young 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 Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. 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 Ernst & Young at +971 4 332 4.
Various markets monthly performance (US Dollar) Ernst & Young 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$ 57. 34. 23. 198 229-13.2% 114 8 42.5% Egypt Cairo City US$ 3. 24. 6. 95 94 1.3% 29 23 28.1% Cairo Overall US$ 32.3 26.4 5.9 94 91 3.1% 3 24 26.1% Hurghada US$ 63. 43. 2. 39 34 14.1% 25 15 64.9% Sharm El Shaikh US$ 64. 59. 5. 57 48 17.8% 37 29 26.5% Jordan Amman US$ 5. 68. -18. 154 142 7.9% 77 97-2.3% Kuwait Kuwait US$ 61. 54. 7. 33 266 13.7% 187 145 29.3% Lebanon Beirut US$ 49. 6. -11. 167 229-27.2% 82 139-41.2% Oman Muscat US$ 71. 75. -4. 21 28 1.% 151 158-4.5% Qatar Doha US$ 69. 65. 4. 246 264-6.8% 172 173-1.% Saudi Arabia Jeddah US$ 73. 75. -2. 257 237 8.4% 189 18 5.% Madina US$ 69. 62. 7. 26 181 13.8% 143 112 27.2% Makkah US$ 82. 81. 1. 25 229 9.1% 27 187 1.8% Riyadh US$ 56. 55. 1. 229 244-6.% 13 134-3.2% United Arab Emirates Abu Dhabi US$ 78. 78.. 217 234-7.4% 17 185-7.9% Al Ain US$ 67. 51. 16. 123 144-14.3% 84 74 13.1% Dubai Beach US$ 85. 83. 2. 424 398 6.5% 364 332 9.8% Dubai City US$ 92. 9. 2. 249 228 9.1% 23 26 11.8% Dubai Overall US$ 9. 87.5 2.4 313 292 7.4% 282 256 1.4% 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 Ernst & Young 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, Ernst & Young 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 Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. 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 Ernst & Young at +971 4 332 4.
Various markets Year to Date performance (Local Currency) Ernst & Young Middle East Hotel Benchmark Survey Year to Date Performance: 1/213 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 57. 34. 23. 75 86-13.2% 43 3 42.5% Egypt Cairo City EGP 3. 24. 6. 547 54 1.3% 168 131 28.1% Cairo Overall EGP 32. 26. 6. 544 527 3.1% 176 139 26.1% Hurghada EGP 63. 43. 2. 223 196 14.1% 142 86 64.9% Sharm El Shaikh EGP 64. 59. 5. 329 279 17.8% 211 167 26.5% Jordan Amman JOD 5. 68. -18. 18 1 7.9% 55 68-2.3% Kuwait Kuwait KWD 61. 54. 7. 88 78 13.7% 55 42 29.3% Lebanon Beirut LBP 49. 6. -11. 252,496 347,72-27.2% 123,782 21,54-41.2% Oman Muscat OMR 71. 75. -4. 81 8 1.% 58 61-4.5% Qatar Doha QAR 69. 65. 4. 895 96-6.8% 624 63-1.% Saudi Arabia Jeddah SAR 73. 75. -2. 963 888 8.4% 77 673 5.% Madina SAR 69. 62. 7. 771 678 13.8% 535 421 27.2% Makkah SAR 82. 81. 1. 937 859 9.1% 777 72 1.8% Riyadh SAR 56. 55. 1. 859 914-6.% 488 54-3.2% United Arab Emirates Abu Dhabi AED 78. 78.. 797 861-7.4% 624 678-7.9% Al Ain AED 67. 51. 16. 453 529-14.3% 38 272 13.1% Dubai Beach AED 85. 83. 2. 1,558 1,463 6.5% 1,337 1,218 9.8% Dubai City AED 92. 9. 2. 913 837 9.1% 846 756 11.8% Dubai Overall AED 89. 87. 2. 1,151 1,72 7.4% 1,36 938 1.4% 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 Ernst & Young 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, Ernst & Young 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 Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. 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 Ernst & Young at +971 4 332 4.
Various markets Year to Date performance (US Dollar) Ernst & Young Middle East Hotel Benchmark Survey Year to Date Performance: 1/213-1/213 Currency: US$ Occupancy Average Room Rate Rooms Yield Currency 213% 212% Change in % Points 213 212 Change 213 212 Change Bahrain Manama US$ 57. 34. 23. 198 229-13.2% 114 8 42.5% Egypt Cairo City US$ 3. 24. 6. 95 94 1.3% 29 23 28.1% Cairo Overall US$ 32. 26. 6. 94 91 3.1% 3 24 26.1% Hurghada US$ 63. 43. 2. 39 34 14.1% 25 15 64.9% Sharm El Shaikh US$ 64. 59. 5. 57 48 17.8% 37 29 26.5% Jordan Amman US$ 5. 68. -18. 154 142 7.9% 77 97-2.3% Kuwait Kuwait US$ 61. 54. 7. 33 266 13.7% 187 145 29.3% Lebanon Beirut US$ 49. 6. -11. 167 229-27.2% 82 139-41.2% Oman Muscat US$ 71. 75. -4. 21 28 1.% 151 158-4.5% Qatar Doha US$ 69. 65. 4. 246 264-6.8% 172 173-1.% Saudi Arabia Jeddah US$ 73. 75. -2. 257 237 8.4% 189 18 5.% Madina US$ 69. 62. 7. 26 181 13.8% 143 112 27.2% Makkah US$ 82. 81. 1. 25 229 9.1% 27 187 1.8% Riyadh US$ 56. 55. 1. 229 244-6.% 13 134-3.2% United Arab Emirates Abu Dhabi US$ 78. 78.. 217 234-7.4% 17 185-7.9% Al Ain US$ 67. 51. 16. 123 144-14.3% 84 74 13.1% Dubai Beach US$ 85. 83. 2. 424 398 6.5% 364 332 9.8% Dubai City US$ 92. 9. 2. 249 228 9.1% 23 26 11.8% Dubai Overall US$ 89. 87. 2. 313 292 7.4% 282 256 1.4% 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 Ernst & Young 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, Ernst & Young 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 Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. 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 Ernst & Young at +971 4 332 4.
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