Benchmark Middle East Hotel Benchmark Survey Report November 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 November 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: November 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.
November 213 Key Performance Highlights The hospitality market in Cairo and the Egyptian Red Sea city resorts continue to weather a downward cycle Continuing the downward trend seen during the year, Cairo city RevPAR declined by approximately 65.3% in November 213 when compared to the same period last year. As the political unrest continues in the country, average occupancy has decreased from 44.% in November 212 to 17.% in November 213. As well as a drop in ADR from US$94 to US$8 during the same period. Hughada and Sharm El Shaikh have also witnessed a decrease in RevPAR in November 213, compared to November 212 of 48.% and 47.7% respectively. Average occupancy declined in the same period from 22.% and 31.% for both Hurghada and Sham El Shaikh, coupled by a drop in ADR of 31.% and 19.5% respectively. Madina and Riyadh s hospitality markets have registered a decline in RevPAR in November 213 compared to November 212 In November 213, Madina s RevPAR decreased by 35.7% as compared to November 212 figures, this was mainly due to low ADR in November 213 which averaged US$158 compared to US$214 in November 212, coupled by a drop in average occupancy of 7.% during the same period. Riyadh s hospitality market performance also decreased during the same period, as average occupancy declined by 16.%, in addition to a decrease in ADR from US$235 in November 212 to US$29 in November 213, resulting in a decline in Riyadh s RevPAR of 33.5%. Makkah has registered a decrease in ADR of 33.3% in November 213 compared to the same period last year, declining from US$364 in November 212 to US$243 in November 213. A major reason for the slump in Saudi Arabia s hospitality market has been attributed to reduction in the number of arrival to the Kingdom due to fears over the MERS virus. Before the Hajj season began this year, the Saudi Health Ministry urged pilgrims to postpone their pilgrimages in order to curb the spread of the MERS. As such, Hajj numbers were down in 213 by approximately 1 million or 21% from last year based on information published by the Interior Minister Prince. UAE s hospitality market registers a slight drop RevPAR performance when compared to November 212 Although the UAE hospitality market figures in November 213 are slightly lower than the same period last year, it should be noted that approximately 2,95 new branded hotel rooms were added to Dubai s hotel supply including several major 5-star hotel openings such as Ocean View Hotel, the Ritz Carlton extension on Jumeirah Beach, Sofitel Palm Jumeirah, Anantara Plam Jumeirah, Oberoi, and Conrad. Dubai s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, as RevPAR has only decline by.3%. Dubai s overall average occupancy decreased by approximately 5.1% in November 213 compared to November 212, however, ADR increased by 5.6%. In November 213, Dubai s hospitality market performance improved month over month, with ADR increasing from US$33 in October 213 to US$333 in November 213, which was coupled with an increase in average occupancy of 3% during the same period. Abu Dhabi has increased its supply of branded 4 & 5 star hotels during 213, by introducing approximately 1,7 new branded hotel rooms primarily due from Dusit Thani, Rosewood, St. Regis Nation Towers as well as some others. Abu Dhabi has witnessed a slight decrease in ADR in November 213, dropping from US$256 to US$25 year on year, resulting in minor decline in RevPAR of.7% during the same period.
Markets with the largest variance on a per month basis % Occupancy for Sharm El Shaikh Hotels Occupancy % 9 8 7 6 5 4 3 2 1 88 69 64 64 76 Occupancy % 8 65 72 62 63 45 57 57 Average Room Rate for Makkah (US$) 7 6 Average room rate 66 613 523 Average room rate 5 4 3 2 364 249 25 222 213 26 168 25 186 243 Rev PAR in Riyadh (US$) Room yield 18 16 14 12 8 6 15 133 13 159 152 Room yield 162 146 122 96 71 143 16 4 2
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % 9 8 7 6 5 91 84 9 9 9 Occupancy % 86 83 79 51 7 75 83 86 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 35 3 315 285 313 298 328 Average room rate 313 33 333 Average room rate 25 2 15 243 192 179 213 221 5 Rev PAR in Dubai Overall hotels (US$) 35 Room yield 3 287 282 267 295 269 274 286 25 238 Room Yield 2 15 22 152 149 165 91 5
Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 11/213 Currency: Local Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama BHD 46. 43. 3. 75 76-2.% 35 33 5.3% Egypt Cairo City EGP 17. 44. -27. 464 541-14.1% 83 24-65.3% Cairo Overall EGP 19.2 45.4-26.2 477 535-11.% 91 243-62.4% Hurghada EGP 66. 88. -22. 148 214-31.% 99 19-48.% Sharm El Shaikh EGP 57. 88. -31. 24 299-19.5% 138 263-47.7% Jordan Amman JOD 66. 63. 3. 17 13 4.3% 71 65 9.1% Kuwait Kuwait KWD 45. 56. -11. 83 78 7.2% 38 43-13.4% Lebanon Beirut LBP 47. 38. 9. 255,918 26,767-1.9% 121,317,96 2.2% Oman Muscat OMR 83. 71. 12. 8 8 -.4% 67 57 16.5% Qatar Doha QAR 67. 7. -3. 916 1,52-12.9% 621 74-16.1% Saudi Arabia Jeddah SAR 77. 77.. 936 926 1.1% 73 714 2.3% Madina SAR 44. 51. -7. 592 83-26.2% 264 41-35.7% Makkah SAR 38. 3. 8. 91 1,364-33.3% 349 42-16.8% Riyadh SAR 47. 63. -16. 784 883-11.2% 374 562-33.5% United Arab Emirates Abu Dhabi AED 84. 83. 1. 919 941-2.3% 778 784 -.7% Al Ain AED 72. 77. -5. 583 587 -.7% 424 456-7.% Dubai Beach AED 79. 91. -12. 1,827 1,642 11.3% 1,46 1,497-2.4% Dubai City AED 9. 9.. 861 835 3.2% 776 758 2.4% Dubai Overall AED 85.9 91. -5.1 1,223 1,158 5.6% 1,51 1,53 -.3% 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: 11/213 Currency: US$ Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama US$ 46. 43. 3. 198 22-2.% 93 88 5.3% Egypt Cairo City US$ 17. 44. -27. 8 94-14.1% 14 42-65.3% Cairo Overall US$ 19.2 45.4-26.2 83 93-11.% 16 42-62.4% Hurghada US$ 66. 88. -22. 26 37-31.% 17 33-48.% Sharm El Shaikh US$ 57. 88. -31. 42 52-19.5% 24 46-47.7% Jordan Amman US$ 66. 63. 3. 153 146 4.3% 11 93 9.1% Kuwait Kuwait US$ 45. 56. -11. 285 266 7.2% 129 149-13.4% Lebanon Beirut US$ 47. 38. 9. 169 172-1.9% 8 67 2.2% Oman Muscat US$ 83. 71. 12. 28 29 -.4% 173 148 16.5% Qatar Doha US$ 67. 7. -3. 252 289-12.9% 171 24-16.1% Saudi Arabia Jeddah US$ 77. 77.. 25 247 1.1% 195 19 2.3% Madina US$ 44. 51. -7. 158 214-26.2% 7 19-35.7% Makkah US$ 38. 3. 8. 243 364-33.3% 93 112-16.8% Riyadh US$ 47. 63. -16. 29 235-11.2% 15-33.5% United Arab Emirates Abu Dhabi US$ 84. 83. 1. 25 256-2.3% 212 214 -.7% Al Ain US$ 72. 77. -5. 159 16 -.7% 115 124-7.% Dubai Beach US$ 79. 91. -12. 497 447 11.3% 398 48-2.4% Dubai City US$ 9. 9.. 235 227 3.2% 211 26 2.4% Dubai Overall US$ 85.9 91. -5.1 333 315 5.6% 286 287 -.3% 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 November) 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. 77 78-1.4% 33 29 11.5% Egypt Cairo City EGP 22. 38. -16. 494 496 -.4% 111 193-42.4% Cairo Overall EGP 24. 4. -16. 53 493 2.1% 121 2-39.4% Hurghada EGP 64. 74. -1. 213 184 16.% 137 136.3% Sharm El Shaikh EGP 64. 76. -12. 33 267 13.3% 195 24-4.1% Jordan Amman JOD 62. 71. -9. 11 16 3.5% 68 76-9.6% Kuwait Kuwait KWD 56. 54. 2. 85 86 -.9% 48 47 2.8% Lebanon Beirut LBP 51. 54. -3. 254,46 36,419-17.% 13,375 168,24-22.4% Oman Muscat OMR 67. 66. 1. 81 78 2.8% 54 52 4.3% Qatar Doha QAR 65. 65.. 919 951-3.4% 598 623-4.% Saudi Arabia Jeddah SAR 79. 8. -1. 1,31 935 1.3% 822 752 9.4% Madina SAR 64. 68. -4. 888 894 -.6% 573 61-6.% Makkah SAR 69. 75. -6. 1,181 1,185 -.4% 819 9-9.1% Riyadh SAR 57. 57.. 82 849-3.4% 471 485-3.% United Arab Emirates Abu Dhabi AED 76. 75. 1. 762 715 6.5% 585 542 8.1% Al Ain AED 71. 64. 7. 524 513 2.2% 377 331 13.7% Dubai Beach AED 77. 78. -1. 1,388 1,286 7.9% 1,75 1,15 5.9% Dubai City AED 81. 81.. 789 744 6.% 645 65 6.6% Dubai Overall AED 8. 8.. 1,12 95 6.6% 811 764 6.2% 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 4.
Various markets Year-to-Date performance (US dollar) EY Middle East Hotel Benchmark Survey Year over Year performance (January November) 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. 25 28-1.4% 87 78 11.5% Egypt Cairo City US$ 22. 38. -16. 86 86 -.4% 19 33-42.4% Cairo Overall US$ 24. 4. -16. 87 85 2.1% 21 35-39.4% Hurghada US$ 64. 74. -1. 37 32 16.% 24 24.3% Sharm El Shaikh US$ 64. 76. -12. 52 46 13.3% 34 35-4.1% Jordan Amman US$ 62. 71. -9. 156 15 3.5% 97 17-9.6% Kuwait Kuwait US$ 56. 54. 2. 293 296 -.9% 164 16 2.8% Lebanon Beirut US$ 51. 54. -3. 168 22-17.% 86 111-22.4% Oman Muscat US$ 67. 66. 1. 29 24 2.8% 141 136 4.3% Qatar Doha US$ 65. 65.. 253 262-3.4% 164 171-4.% Saudi Arabia Jeddah US$ 79. 8. -1. 275 249 1.3% 219 2 9.4% Madina US$ 64. 68. -4. 237 238 -.6% 153 163-6.% Makkah US$ 69. 75. -6. 315 316 -.4% 218 24-9.1% Riyadh US$ 57. 57.. 219 226-3.4% 126 129-3.% United Arab Emirates Abu Dhabi US$ 76. 75. 1. 27 195 6.5% 159 147 8.1% Al Ain US$ 71. 64. 7. 143 14 2.2% 13 9 13.7% Dubai Beach US$ 77. 78. -1. 378 35 7.9% 293 277 5.9% Dubai City US$ 81. 81.. 215 23 6.% 176 165 6.6% Dubai Overall US$ 8. 8.. 276 259 6.6% 221 28 6.2% 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 4.
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