Benchmark Middle East Hotel Benchmark Survey Report August 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 August 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: August 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.
August 213 Key performance highlights Amman and Beirut average occupancy rates were higher in August 213 than August 212, mainly due to the celebration of Eid Al Fitr in August this year In August 213, average occupancy in Amman was registered at 63.% compared to 42.% in August 212. Although ADR was slightly lower by 1.3% in the same period last year, RevPAR increased by an outstanding rate of 46.3%. Beirut s hospitality market has also recorded an increase in RevPAR during August this year, RevPAR increased from USD 69 in August 212 to USD 86 in August 213. This was due to an increase in average occupancy of approximately 12.% over the same period, from 35.% to 47.%. The hospitality market in both Kuwait and Muscat recorded an increase in RevPAR during August 213 of 38.4% and 37.1% respectively. Kuwait s occupancy rates increased by 9.% in August 213 compared to the same period last year, in addition, ADR jumped by 11.7% during the same period from USD 277 to USD 39. Muscat recorded a slight increase in average occupancy of 3.% when compared to the same period last year, which was coupled with a healthy increase in ADR from USD 166 in August 212 to USD 211 in August 213. Makkah and Madina s hospitality market witnessed a decline in August 213, which was due to the fact that Ramadan started on 8 July 213 compared to last year which commenced on 19 July 212 During the holy month of Ramadan, many Muslims from across the globe visit the holy cities of Makkah and Madina. However, each year the holy month is observed at a different date, this year Ramadan started on 8 July 213 and ended on 7 August 213, while in the previous year, Ramadan commenced on 19 July 212 and ended on 18 August 212. In August 213, Makkah s average occupancy rates declined by 22.% compared to the same period last year, the decrease was coupled with a drop in ADR from USD 723 to USD 613 during the same period, which resulted in RevPAR decrease of 39.5%. Madina also witnessed a decline of 22.% in average occupancy during the same period, coupled with a decrease in ADR from USD 468 to USD 3, resulting in a 48.1% decrease in RevPAR. Continuing the downward trend seen in July 213, Cairo s RevPAR plunged by 61.6% in August 213 compared to August 212 figures, which was mainly due to the decrease in average occupancy by 23.% from the previous year. UAE s hospitality market witness positive RevPAR growth in August 213 Dubai s overall average occupancy increased by approximately 7.8% in August 213 compared to August 212, with a further increase in ADR of 11.7%, resulting in a healthy increase in RevPAR of approximately 25.8%. This was due to tourist arrivals from the GGC visiting Dubai during Eid Al Fitr as well as the Dubai Summer Surprises festival. In August 213, Dubai s hospitality market performance improved month over month, with ADR increasing from USD 179 in July 213 to USD 213 in August 213, which was also coupled with an increase in average occupancy of 19% during the same period. Abu Dhabi witnessed an increase in ADR in August 213, from USD 128 to USD 145 year on year, resulting in RevPAR growth of 19.6% during the same period.
Markets with the largest variance on a per month basis % Occupancy for Amman Hotels Occupancy % 8 7 6 4 3 42 72 69 63 52 Occupancy % 58 65 67 64 73 48 63 2 1 Average Room Rate for Madina (US$) 468 Average room rate Average room rate 4 4 3 3 2 2 1 159 426 214 179 26 196 22 182 153 171 396 3 1 Rev PAR in Kuwait Hotels (US$) 2 232 Room yield Room yield 2 1 1 12 158 149 133 187 21 176 29 159 181 135 142
Dubai overall monthly performance % Occupancy for Dubai Overall hotels Room yield 1 9 8 7 6 62 73 87 91 84 Occupancy % 9 9 9 86 83 79 51 7 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 3 3 32 39 285 Average room rate 328 313 298 313 313 2 Average room rate 2 1 191 24 192 179 213 1 Rev PAR in Dubai Overall hotels (US$) 3 Room yield 3 2 261 281 238 282 267 295 269 Occupancy % 2 1 118 148 22 152 149 1 91
Various markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 8/213 Currency: Local Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama BHD 31. 31.. 68 65 5.8% 21 2 5.% Egypt Cairo City EGP 11. 34. -23. 557 53 5.1% 65 184-64.6% Cairo Overall EGP 13.1 36.2-23. 553 523 5.8% 73 189-61.6% Hurghada EGP 58. 82. -24. 268 223 2.% 156 184-15.3% Sharm El Shaikh EGP 63. 76. -13. 333 34 9.7% 213 231-8.% Jordan Amman JOD 63. 42. 21. 17 18-1.3% 68 46 46.3% Kuwait Kuwait KWD 45. 36. 9. 9 81 11.7% 41 3 38.4% Lebanon Beirut LBP 47. 35. 12. 271,866 297,21-8.5% 13,339 15,72 24.% Oman Muscat OMR 46. 43. 3. 81 64 26.6% 38 28 37.1% Qatar Doha QAR 48. 45. 3. 885 89 9.4% 433 367 17.9% Saudi Arabia Jeddah SAR 73. 78. -5. 1,19 1,79 2.8% 818 849-3.6% Madina SAR 48. 7. -22. 1,312 1,755-25.2% 642 1,236-48.1% Makkah SAR 54. 76. -22. 2,297 2,713-15.3% 1,263 2,87-39.5% Riyadh SAR 36. 31. 5. 723 668 8.3% 266 213 24.8% United Arab Emirates Abu Dhabi AED 66. 62. 4. 532 469 13.5% 353 295 19.6% Al Ain AED 7. 56. 14. 514 474 8.3% 363 27 34.6% Dubai Beach AED 67. 67.. 954 87 18.2% 643 544 18.4% Dubai City AED 71. 57. 14. 685 631 8.7% 489 364 34.2% Dubai Overall AED 69.9 62.1 7.8 783 71 11.7% 547 435 25.8% 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: 8/213 Currency: US$ Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama US$ 31. 31.. 182 172 5.8% 57 54 5.% Egypt Cairo City US$ 11. 34. -23. 96 92 5.1% 11 32-64.6% Cairo Overall US$ 13.1 36.2-23. 96 91 5.8% 13 33-61.6% Hurghada US$ 58. 82. -24. 46 39 2.% 27 32-15.3% Sharm El Shaikh US$ 63. 76. -13. 58 53 9.7% 37 4-8.% Jordan Amman US$ 63. 42. 21. 152 154-1.3% 96 66 46.3% Kuwait Kuwait US$ 45. 36. 9. 39 277 11.7% 142 12 38.4% Lebanon Beirut US$ 47. 35. 12. 179 196-8.5% 86 69 24.% Oman Muscat US$ 46. 43. 3. 211 166 26.6% 98 72 37.1% Qatar Doha US$ 48. 45. 3. 243 222 9.4% 119 11 17.9% Saudi Arabia Jeddah US$ 73. 78. -5. 296 288 2.8% 218 226-3.6% Madina US$ 48. 7. -22. 3 468-25.2% 171 33-48.1% Makkah US$ 54. 76. -22. 613 723-15.3% 337 557-39.5% Riyadh US$ 36. 31. 5. 193 178 8.3% 71 57 24.8% United Arab Emirates Abu Dhabi US$ 66. 62. 4. 145 128 13.5% 96 8 19.6% Al Ain US$ 7. 56. 14. 14 129 8.3% 99 74 34.6% Dubai Beach US$ 67. 67.. 26 22 18.2% 175 148 18.4% Dubai City US$ 71. 57. 14. 187 172 8.7% 133 99 34.2% Dubai Overall US$ 69.9 62.1 7.8 213 191 11.7% 149 118 25.8% 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 August) Currency: Local Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama BHD 41. 36. 5. 78 79-1.2% 32 28 13.8% Egypt Cairo City EGP 24. 36. -12. 4 473 6.6% 126 175-28.% Cairo Overall EGP 26. 38. -12. 512 472 8.5% 136 183-25.6% Hurghada EGP 69. 69.. 218 166 31.% 152 116 31.4% Sharm El Shaikh EGP 68. 72. -4. 313 254 23.3% 215 184 16.7% Jordan Amman JOD 61. 72. -11. 111 16 4.% 68 77-11.9% Kuwait Kuwait KWD 59. 52. 7. 86 85 1.7% 51 44 14.5% Lebanon Beirut LBP 54. 59. -5. 253,682 315,419-19.6% 137,762 189,138-27.2% Oman Muscat OMR 65. 65.. 8 77 3.8% 52 4.3% Qatar Doha QAR 65. 64. 1. 924 949-2.6% 63 68 -.8% Saudi Arabia Jeddah SAR 79. 8. -1. 1,49 928 13.% 835 7 11.3% Madina SAR 68. 73. -5. 841 825 1.9% 577 64-4.5% Makkah SAR 76. 85. -9. 1,139 1,81 5.4% 873 92-5.1% Riyadh SAR 59. 56. 3. 827 848-2.5% 489 483 1.4% United Arab Emirates Abu Dhabi AED 75. 74. 1. 739 686 7.6% 56 511 9.7% Al Ain AED 69. 61. 8. 498 3-1.% 347 311 11.6% Dubai Beach AED 78. 77. 1. 1,324 1,236 7.1% 1,35 961 7.6% Dubai City AED 8. 8.. 777 726 7.1% 626 585 7.1% Dubai Overall AED 79. 79.. 982 917 7.1% 783 729 7.4% 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 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 August) Currency: US$ Occupancy Average room rate Rooms yield Currency 213% 212% Change in % points 213 212 Change 213 212 Change Bahrain Manama US$ 41. 36. 5. 27 21-1.2% 86 76 13.8% Egypt Cairo City US$ 24. 36. -12. 87 82 6.6% 22 3-28.% Cairo Overall US$ 26. 38. -12. 89 82 8.5% 24 32-25.6% Hurghada US$ 69. 69.. 38 29 31.% 26 2 31.4% Sharm El Shaikh US$ 68. 72. -4. 54 44 23.3% 37 32 16.7% Jordan Amman US$ 61. 72. -11. 157 151 4.% 96 19-11.9% Kuwait Kuwait US$ 59. 52. 7. 295 29 1.7% 175 152 14.5% Lebanon Beirut US$ 54. 59. -5. 167 28-19.6% 91 125-27.2% Oman Muscat US$ 65. 65.. 28 2 3.8% 136 131 4.3% Qatar Doha US$ 65. 64. 1. 254 261-2.6% 166 167 -.8% Saudi Arabia Jeddah US$ 79. 8. -1. 28 248 13.% 223 2 11.3% Madina US$ 68. 73. -5. 224 22 1.9% 154 161-4.5% Makkah US$ 76. 85. -9. 34 288 5.4% 233 245-5.1% Riyadh US$ 59. 56. 3. 22 226-2.5% 131 129 1.4% United Arab Emirates Abu Dhabi US$ 75. 74. 1. 21 187 7.6% 153 139 9.7% Al Ain US$ 69. 61. 8. 136 137-1.% 95 85 11.6% Dubai Beach US$ 78. 77. 1. 361 337 7.1% 282 262 7.6% Dubai City US$ 8. 8.. 212 198 7.1% 17 159 7.1% Dubai Overall US$ 79. 79.. 267 2 7.1% 213 199 7.4% 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 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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