Dubai: The performance of the Middle East’s hotels was mixed this January, according to recently released data from STR.
Compared to the same month in 2017, hotels throughout the Middle East saw occupancy increase marginally by 1.9 per cent to 69.1 per cent.
The average daily rate (ADR) declined, however, by 3.4 per cent, to $170.28 (Dh625.43). And the revenue per available room (RevPAR), a key metric used to measure the health of a hotel, declined by 1.6 per cent to $117.75.
Saudi Arabia suffered a fall in ADR year-on-year, with the daily rate of the country’s hotels dropping by 5.2 per cent to SAR566.34.
The country’s RevPAR increased by only 0.9 per cent to SAR336.70.
According to the report from STR, the January school holiday, which fell primarily in February last year, pushed a 16.4 per cent rise in demand in Saudi Arabia. Both occupancy and ADR levels continue to be pressured by supply growth, which rose to 9.3 per cent for the month.
As STR reported last week, Saudi Arabia’s hotel development pipeline represents 76 per cent of the existing room supply in the country. However, STR analysts stress the importance of considering the long-term investments being made in tourism and hospitality as part of Vision 2030.
