Benchmark Middle East Hotel Benchmark Survey Report March 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 March 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: March 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.
March 213 Key Performance Highlights Egypt s Red Sea resorts continue to experience a positive increase through 213 Egypt s Red Sea city resorts, more specifically Hurghada and Sharm El Shaikh, have continued the upward trend seen from the beginning of this year. Both Hurghada and Sharm El Shaikh cities saw an increase in occupancy over last year of approximately 7% and 4% respectively. Hurghada experienced the largest percentage increase in average room rates during March 213, increasing by 46% year on year, from USD 23 in March 212 to USD 34 this year. Sharm El Shaikh also witnessed a major increase in average room rates during the same period, increasing by approximately 4% year on year, from USD 4 in March 212 to USD 56 this year. The hospitality market in Lebanon and Jordan continue to weather a downward cycle Continuing the downward trend seen in January and February, Beirut average room rates decreased by approximately 2.9%, year on year, during the month of March, falling from USD 2 in March 212, to USD 158 this year. Average occupancy decreased by 16% over last year, resulting in one of the largest corresponding decreases in Rev PAR of 37.4%, dropping from USD 149 during March 212 to USD 93 during March this year. In April 213 the Lebanese Minister of Tourism Fadi Abboud stated that any security and instability, whether real or exaggerated on television (in Syria and Lebanon), is directly linked to the tourism sector, which has resulted in tourists becoming afraid to visit Lebanon. The World Travel & Tourism Council projected a 2.1% decrease in tourism s direct contribution to the Lebanese economy during 213, according to the Lebanese Daily Star. Jordan continues to record lower levels of average occupancy, decreasing by 1.8% year over year, although the rate of decline has slowed marginally since February. It should also be noted that Rev Par dropped by approximately 16.3% during the same period. Dubai s hospitality market sees healthy growth continue through March 213 Dubai s overall average occupancy increased slightly by approximately 2.% in March over last year. Dubai airport handled 5.85 million passengers in March, up 2.6% from the previous year, according to airport authorities. This increase in occupancy was coupled with a healthy increase in average room rates of 9.7%, with the highest average room rate recorded for Dubai over the past year of USD 328 in March, compared to USD 299 in March 212 and USD 298 during February 213.
Markets with the largest variance on a per month basis % Occupancy for Beirut Hotels 8 74 Occupancy % March 212 March 213 7 66 67 Occupancy % 6 4 3 58 53 34 46 39 39 52 49 6 58 2 1 Average Room Rate for Hurghada (US$) 45 Average Room Rate March 212 March 213 46 Average Room Rate 4 35 3 25 2 23 32 28 26 33 39 33 37 32 39 33 34 15 1 5 Rev PAR in Sharm El Shaikh Hotels (US$) 6 Room Yield March 212 March 213 Room Yield 4 3 2 29 39 29 27 33 32 37 46 34 37 32 43 1
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels Occupancy % 1 9 8 7 6 4 89 86 79 78 69 Occupancy % March 212 March 213 87 73 62 91 84 9 9 9 3 2 1 Average Room Rate for Dubai Overall Hotels (US$) 3 3 299 29 Average Room Rate March 212 March 213 32 39 285 313 298 328 Average Room Rate 2 2 1 24 174 167 188 24 1 Rev PAR in Dubai Overall Hotels (US$) 3 Room Yield March 212 March 213 3 2 266 249 261 281 238 282 267 295 Room Yield 2 1 161 135 116 117 148 1
Various markets monthly performance (Local Currency) Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 3/213 Currency: Local Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points 213 212 Change 213 212 Change Bahrain Manama BHD 45. 39. 6. 79 82-3.2% 36 33 1.8% Egypt Cairo City EGP 24. 37. -13. 464 464.2% 115 173-33.7% Cairo Overall EGP 26.7 39.1-12.4 479 465 3.2% 128 182-29.6% Hurghada EGP 71. 64. 7. 195 134 46.1% 14 86 63.7% Sharm El Shaikh EGP 76. 72. 4. 324 232 39.8% 246 169 46.1% Jordan Amman JOD 65. 88. -23. 116 14 12.4% 76 91-16.3% Kuwait Kuwait KWD 63. 64. -1. 81 91-1.8% 51 58-11.6% Lebanon Beirut LBP 58. 74. -16. 239,712 33,13-2.9% 141,56 225,4-37.4% Oman Muscat OMR 88. 82. 6. 86 83 4.2% 76 68 11.4% Qatar Doha QAR 8. 71. 9. 1,67 1,39 2.7% 86 748 15.% Saudi Arabia Jeddah SAR 78. 81. -3. 1,8 91 11.9% 788 737 7.% Madina SAR 77. 78. -1. 758 673 12.7% 591 53 11.4% Makkah SAR 82. 9. -8. 8 764 4.7% 664 692-4.1% Riyadh SAR 67. 64. 3. 845 885-4.6% 572 567.8% United Arab Emirates Abu Dhabi AED 85. 83. 2. 822 781 5.2% 699 649 7.7% Al Ain AED 73. 64. 9. 516 5-6.1% 38 352 8.% Dubai Beach AED 89. 87. 2. 1,73 1,593 8.6% 1,544 1,396 1.6% Dubai City AED 9. 89. 1. 879 797 1.3% 792 714 11.% Dubai Overall AED 89.9 88.9 1. 1,25 1,98 9.7% 1,83 976 11.% 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: 3/213 Currency: US$ Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points 213 212 Change 213 212 Change Bahrain Manama US$ 45. 39. 6. 21 217-3.2% 96 87 1.8% Egypt Cairo City US$ 24. 37. -13. 8 8.2% 2 3-33.7% Cairo Overall US$ 26.7 39.1-12.4 83 81 3.2% 22 31-29.6% Hurghada US$ 71. 64. 7. 34 23 46.1% 24 15 63.7% Sharm El Shaikh US$ 76. 72. 4. 56 4 39.8% 43 29 46.1% Jordan Amman US$ 65. 88. -23. 165 147 12.4% 19 13-16.3% Kuwait Kuwait US$ 63. 64. -1. 277 31-1.8% 176 199-11.6% Lebanon Beirut US$ 58. 74. -16. 158 2-2.9% 93 149-37.4% Oman Muscat US$ 88. 82. 6. 224 215 4.2% 197 177 11.4% Qatar Doha US$ 8. 71. 9. 293 286 2.7% 236 26 15.% Saudi Arabia Jeddah US$ 78. 81. -3. 269 24 11.9% 21 197 7.% Madina US$ 77. 78. -1. 22 179 12.7% 158 141 11.4% Makkah US$ 82. 9. -8. 213 24 4.7% 177 185-4.1% Riyadh US$ 67. 64. 3. 225 236-4.6% 152 151.8% United Arab Emirates Abu Dhabi US$ 85. 83. 2. 224 213 5.2% 19 177 7.7% Al Ain US$ 73. 64. 9. 141 1-6.1% 14 96 8.% Dubai Beach US$ 89. 87. 2. 471 434 8.6% 421 38 1.6% Dubai City US$ 9. 89. 1. 239 217 1.3% 216 194 11.% Dubai Overall US$ 89.9 88.9 1. 328 299 9.7% 295 266 11.% 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 3/213 Currency: Local Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points 213 212 Change 213 212 Change Bahrain Manama BHD 48. 36. 12. 78 84-7.2% 38 31 23.5% Egypt Cairo City EGP 25. 3. -5. 487 2.6% 13 1-13.3% Cairo Overall EGP 28. 32. -4. 7 483 5.1% 143 159-1.1% Hurghada EGP 65. 52. 13. 24 157 29.7% 133 83 6.% Sharm El Shaikh EGP 68. 66. 2. 314 245 28.5% 215 163 32.5% Jordan Amman JOD 58. 8. -22. 112 12 9.8% 65 82-2.5% Kuwait Kuwait KWD 63. 57. 6. 87 84 3.6% 55 48 13.4% Lebanon Beirut LBP 56. 66. -1. 244,28 318,2-23.3% 136,794 211,872-35.4% Oman Muscat OMR 82. 79. 3. 83 82 1.7% 69 65 5.2% Qatar Doha QAR 73. 71. 2. 964 998-3.4% 79 71.% Saudi Arabia Jeddah SAR 76. 79. -3. 987 89 1.9% 755 75 7.% Madina SAR 76. 72. 4. 755 676 11.6% 577 492 17.4% Makkah SAR 85. 88. -3. 857 85 6.5% 735 711 3.4% Riyadh SAR 64. 61. 3. 8 91-5.6% 5 555-1.% United Arab Emirates Abu Dhabi AED 83. 8. 3. 886 825 7.4% 737 667 1.4% Al Ain AED 71. 59. 12. 518 561-7.5% 372 334 11.2% Dubai Beach AED 87. 83. 4. 1,563 1,491 4.8% 1,365 1,251 9.2% Dubai City AED 91. 9. 1. 95 829 9.2% 827 7 1.3% Dubai Overall AED 89. 87. 2. 1,152 1,73 7.3% 1,35 944 9.7% 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 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 3/213 Currency: US$ Occupancy Average Room Rate Room Yield Currency 213% 212% Change in % Points 213 212 Change 213 212 Change Bahrain Manama US$ 48. 36. 12. 26 222-7.2% 1 81 23.5% Egypt Cairo City US$ 25. 3. -5. 87 84 2.6% 22 26-13.3% Cairo Overall US$ 28. 32. -4. 88 84 5.1% 25 28-1.1% Hurghada US$ 65. 52. 13. 35 27 29.7% 23 14 6.% Sharm El Shaikh US$ 68. 66. 2. 54 42 28.5% 37 28 32.5% Jordan Amman US$ 58. 8. -22. 158 144 9.8% 92 116-2.5% Kuwait Kuwait US$ 63. 57. 6. 297 287 3.6% 188 166 13.4% Lebanon Beirut US$ 56. 66. -1. 161 21-23.3% 9 14-35.4% Oman Muscat US$ 82. 79. 3. 217 213 1.7% 178 169 5.2% Qatar Doha US$ 73. 71. 2. 265 274-3.4% 195 195.% Saudi Arabia Jeddah US$ 76. 79. -3. 263 237 1.9% 21 188 7.% Madina US$ 76. 72. 4. 21 18 11.6% 154 131 17.4% Makkah US$ 85. 88. -3. 229 215 6.5% 196 19 3.4% Riyadh US$ 64. 61. 3. 227 24-5.6% 147 148-1.% United Arab Emirates Abu Dhabi US$ 83. 8. 3. 241 225 7.4% 21 182 1.4% Al Ain US$ 71. 59. 12. 141 153-7.5% 11 91 11.2% Dubai Beach US$ 87. 83. 4. 426 46 4.8% 372 341 9.2% Dubai City US$ 91. 9. 1. 246 226 9.2% 225 24 1.3% Dubai Overall US$ 89. 87. 2. 314 292 7.3% 282 257 9.7% 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 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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