Benchmark Middle East Hotel Benchmark Survey Report tember 2013 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 tember 2013 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 167,000 people in 140 countries. Sincerely Yousef Wahbah Partner and Head of MENA Transaction Real Estate Page 3: tember 2013 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.
tember 2013 Key Performance Highlights Saudi Arabia s hospitality market has witnessed significant increase in RevPAR in tember 2013 compared to the same period last year In tember 2013, all four major cities in Saudi Arabia registered an increase in RevPAR as compared to the same period last year, with Madina witnessing the highest increase in RevPAR of 33.4% mainly due to a jump in ADR from US$159 in tember 2012 to US$176 in tember 2013, coupled with an increase in average occupancy of 8.0% during the same period Makkah recorded an increase of 13.0% in RevPAR during tember this year, which was attributed to a higher average occupancy rate of 40.0% in tember 2013 compared to 36.0% in tember 2012, as well as an slight increase in ADR of 1.5% during the same period Egypt s hospitality market witnessed a decline in tember 2013, which was due to the continued political unrest in the country Cairo overall hospitality market has seen a sharp decrease in tember 2013 RevPAR of 69.9% as compared to tember 2012 figures, mainly due to low occupancy rates in tember 2013 averaged 15.0% in the city This decrease of occupancy was primarily attributable to the political instability that the city had been facing over the summer of 2013 Hurghada and Sharm El Shaikh have also been experiencing a slowdown in performance, with RevPARs decreasing significantly by 50.4% and 40.9% when comparing tember 2013 to tember 2012 results The Lebanese hospitality market continue to record a decrease in RevPAR reaching US$56 in tember 2013, which was 34.5% lower than in tember 2012. This was primarily due to the security situation in the region suggesting a fear of violence spillover from the neighboring Syria crisis UAE s hospitality market witness positive RevPAR growth in tember 2013 Dubai s overall average occupancy increased by approximately 2.8% in tember 2013 compared to tember 2012, with a further increase in ADR of 6.0%, resulting in a healthy increase in RevPAR of approximately 10.2% In tember 2013, Dubai s hospitality market performance improved month over month, with ADR increasing from US$213 in ust 2013 to US$221 in tember 2013, which was also coupled with an increase in average occupancy of 5% during the same period Abu Dhabi witnessed an increase in ADR in tember 2013, from US$152 to US$162 year on year, resulting in RevPAR growth of 3.3% during the same period Al Ain recorded a healthy increase in RevPAR of 30.2% in tember 2013, due to an increase in average occupancy of 16.0% when compared to the same period last year, which was coupled with a jump in ADR from US$127 in tember 2012 to US$134 in tember 2013
kets with the largest variance on a per month basis % Occupancy for Hurghada Hotels 100 Occupancy % tember 2012 tember 2013 Occupancy % 90 80 70 60 50 40 89 81 88 62 63 59 71 86 74 71 72 58 36 30 20 10 0 Average Room Rate for Beirut (US$) 185 183 Average room rate tember 2012 tember 2013 182 180 179 175 Average room rate 170 165 160 171 159 167 167 159 158 163 165 167 163 155 150 145 Rev PAR in Cairo City (US$) 50 45 46 42 Room yield tember 2012 tember 2013 40 37 Room yield 35 30 25 20 27 29 18 20 24 29 32 15 10 5 11 11 10 0
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % 100 90 80 70 60 50 72 87 91 84 Occupancy % tember 2012 tember 2013 90 90 90 86 83 79 51 70 75 40 30 20 10 0 Average room rate for Dubai Overall hotels (US$) 350 300 302 309 285 313 Average room rate tember 2012 tember 2013 298 328 313 Average room rate 250 200 150 100 208 243 192 179 213 221 50 0 Rev PAR in Dubai Overall hotels (US$) 350 Room yield tember 2012 tember 2013 300 250 261 281 238 282 267 295 269 Room Yield 200 150 150 202 152 149 165 100 91 50 0
Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 9/2013 Currency: Local Occupancy Average room rate Rooms yield Currency 2013% 2012% Change in % points 2013 2012 Change 2013 2012 Change Bahrain Manama BHD 42.0 40.0 2.0 76 78-3.2% 32 32 2.2% Egypt Cairo City EGP 13.0 39.0 26.0 430 530 19.0% 58 211 72.6% Cairo Overall EGP 15.0 42.1 27.1 441 523 15.6% 66 220 69.9% Hurghada EGP 36.0 89.0 53.0 234 190 23.2% 84 170 50.4% Sharm El Shaikh EGP 45.0 85.0 40.0 274 247 10.7% 125 212 40.9% Jordan Amman JOD 65.0 72.0 7.0 107 106 0.4% 69 77 10.3% Kuwait Kuwait KWD 59.0 53.0 6.0 83 83 0.6% 50 44 12.0% Lebanon Beirut LBP 34.0 46.0 12.0 246,334 277,418 11.2% 84,582 129,145-34.5% Oman Muscat OMR 63.0 71.0 8.0 81 78 3.9% 51 55-7.4% Qatar Doha QAR 59.0 68.0 9.0 867 858 1.1% 520 583-10.9% Saudi Arabia Jeddah SAR 84.0 83.0 1.0 999 901 10.9% 845 754 12.1% Madina SAR 44.0 36.0 8.0 662 597 10.8% 293 220 33.4% Makkah SAR 40.0 36.0 4.0 698 688 1.5% 285 252 13.0% Riyadh SAR 64.0 61.0 3.0 837 834 0.4% 536 511 4.7% United Arab Emirates Abu Dhabi AED 72.0 74.0 2.0 596 559 6.7% 431 418 3.3% Al Ain AED 84.0 68.0 16.0 492 467 5.2% 417 320 30.2% Dubai Beach AED 68.0 68.0 0.0 1,002 939 6.8% 682 641 6.3% Dubai City AED 79.0 73.0 6.0 716 670 6.8% 567 495 14.6% Dubai Overall AED 74.7 71.9 2.8 811 765 6.0% 606 550 10.2% 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 4000.
Various markets monthly performance (US dollar) EY Middle East Hotel Benchmark Survey Monthly performance: 9/2013 Currency: US$ Occupancy Average room rate Rooms yield Currency 2013% 2012% Change in % points 2013 2012 Change 2013 2012 Change Bahrain Manama US$ 42.0 40.0 2.0 200 207 3.2% 86 84 2.2% Egypt Cairo City US$ 13.0 39.0 26.0 74 92 19.0% 10 37 72.6% Cairo Overall US$ 15.0 42.1 27.1 76 91 15.6% 11 38 69.9% Hurghada US$ 36.0 89.0 53.0 41 33 23.2% 15 29 50.4% Sharm El Shaikh US$ 45.0 85.0 40.0 47 43 10.7% 22 37 40.9% Jordan Amman US$ 65.0 72.0 7.0 151 151 0.4% 99 110 10.3% Kuwait Kuwait US$ 59.0 53.0 6.0 285 283 0.6% 170 152 12.0% Lebanon Beirut US$ 34.0 46.0 12.0 163 183 11.2% 56 85 34.5% Oman Muscat US$ 63.0 71.0 8.0 211 203 3.9% 134 144 7.4% Qatar Doha US$ 59.0 68.0 9.0 238 236 1.1% 143 160 10.9% Saudi Arabia Jeddah US$ 84.0 83.0 1.0 266 240 10.9% 225 201 12.1% Madina US$ 44.0 36.0 8.0 176 159 10.8% 78 59 33.4% Makkah US$ 40.0 36.0 4.0 186 183 1.5% 76 67 13.0% Riyadh US$ 64.0 61.0 3.0 223 222 0.4% 143 136 4.7% United Arab Emirates Abu Dhabi US$ 72.0 74.0 2.0 162 152 6.7% 117 114 3.3% Al Ain US$ 84.0 68.0 16.0 134 127 5.2% 113 87 30.2% Dubai Beach US$ 68.0 68.0 0.0 273 256 6.8% 186 175 6.3% Dubai City US$ 79.0 73.0 6.0 195 182 6.8% 154 135 14.6% Dubai Overall US$ 74.7 71.9 2.8 221 208 6.0% 165 150 10.2% 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 4000.
Various markets Year-to-Date performance (Local currency) EY Middle East Hotel Benchmark Survey Year over Year performance (uary tember) Currency: Local Occupancy Average room rate Rooms yield Currency 2013% 2012% Change in % points 2013 2012 Change 2013 2012 Change Bahrain Manama BHD 41.0 36.0 5.0 78 79 1.4% 32 29 12.4% Egypt Cairo City EGP 23.0 37.0 14.0 500 480 4.0% 118 179 33.9% Cairo Overall EGP 25.0 39.0 14.0 508 478 6.1% 129 187 31.4% Hurghada EGP 66.0 71.0 5.0 219 170 29.1% 145 122 18.8% Sharm El Shaikh EGP 66.0 74.0 8.0 310 253 22.5% 205 187 9.6% Jordan Amman JOD 61.0 72.0 11.0 110 106 3.6% 68 77 11.8% Kuwait Kuwait KWD 59.0 52.0 7.0 86 85 1.6% 51 44 14.3% Lebanon Beirut LBP 52.0 58.0 6.0 253,128 311,971 18.9% 131,681 182,305 27.8% Oman Muscat OMR 65.0 65.0 0.0 80 77 3.8% 52 51 2.9% Qatar Doha QAR 64.0 64.0 0.0 918 939 2.2% 594 605 1.9% Saudi Arabia Jeddah SAR 80.0 81.0 1.0 1,043 925 12.8% 836 751 11.4% Madina SAR 65.0 69.0 4.0 827 812 1.9% 545 561 2.9% Makkah SAR 72.0 79.0 7.0 1,112 1,061 4.8% 809 847 4.5% Riyadh SAR 59.0 57.0 2.0 828 846 2.2% 494 486 1.7% United Arab Emirates Abu Dhabi AED 75.0 74.0 1.0 724 672 7.7% 546 500 9.1% Al Ain AED 71.0 62.0 9.0 497 499 0.3% 355 312 13.8% Dubai Beach AED 77.0 76.0 1.0 1,293 1,207 7.1% 996 927 7.5% Dubai City AED 80.0 79.0 1.0 771 721 7.0% 620 575 7.7% Dubai Overall AED 79.0 78.0 1.0 965 903 6.9% 764 710 7.6% 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 4000.
Various markets Year-to-Date performance (US dollar) EY Middle East Hotel Benchmark Survey Year over Year performance (uary tember) Currency: US$ Occupancy Average room rate Rooms yield Currency 2013% 2012% Change in % points 2013 2012 Change 2013 2012 Change Bahrain Manama US$ 41.0 36.0 5.0 207 210 1.4% 86 76 12.4% Egypt Cairo City US$ 23.0 37.0 14.0 87 83 4.0% 21 31 33.9% Cairo Overall US$ 25.0 39.0 14.0 88 83 6.1% 22 32 31.4% Hurghada US$ 66.0 71.0 5.0 38 29 29.1% 25 21 18.8% Sharm El Shaikh US$ 66.0 74.0 8.0 54 44 22.5% 36 32 9.6% Jordan Amman US$ 61.0 72.0 11.0 156 151 3.6% 96 109 11.8% Kuwait Kuwait US$ 59.0 52.0 7.0 294 290 1.6% 174 152 14.3% Lebanon Beirut US$ 52.0 58.0 6.0 167 206 18.9% 87 120 27.8% Oman Muscat US$ 65.0 65.0 0.0 208 201 3.8% 136 132 2.9% Qatar Doha US$ 64.0 64.0 0.0 252 258 2.2% 163 166 1.9% Saudi Arabia Jeddah US$ 80.0 81.0 1.0 278 247 12.8% 223 200 11.4% Madina US$ 65.0 69.0 4.0 221 217 1.9% 145 150 2.9% Makkah US$ 72.0 79.0 7.0 296 283 4.8% 216 226 4.5% Riyadh US$ 59.0 57.0 2.0 221 226 2.2% 132 130 1.7% United Arab Emirates Abu Dhabi US$ 75.0 74.0 1.0 197 183 7.7% 149 136 9.1% Al Ain US$ 71.0 62.0 9.0 135 136 0.3% 97 85 13.8% Dubai Beach US$ 77.0 76.0 1.0 352 329 7.1% 271 252 7.5% Dubai City US$ 80.0 79.0 1.0 210 196 7.0% 169 157 7.7% Dubai Overall US$ 79.0 78.0 1.0 263 246 6.9% 208 193 7.6% 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 4000.
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