Dubai: Hotels in the Middle East and Africa performed well across key indicators in through year-end 2014, according to a report by research firm STR Global.
Hotels saw a 3.8 per cent increase in occupancy to 63.3 per cent, while average daily rate (ADR) edged up 1 per cent to $165.97 and revenue per available room (RevPAR) grew by 4.9 per cent to $105.13.
“Lower supply coupled with a 9 per cent increase in demand, we’ve seen a positive impact on occupancy [in the Middle East],” said Elizabeth Winkle, managing director of STR Global, in a statement.
Hotel occupancy in the Middle East reached 68.8 per cent at the end of 2014, similar to 2008 levels, said Winkle.
However, “the rate perspective in US dollar terms has remained flat this year and is still about US$28.00 away from its pre-recession peak in 2008,” she said.
In the UAE, occupancy in December 2014 edged up 0.1 per cent to 77 per cent; ADR rose 2.6 per cent to Dh859.84; and RevPAR increased by 2.7 per cent to Dh662.6.
Abu Dhabi hotels had the highest increase in ADR, which was up 9.7 per cent to $159.85.
Meanwhile in the region, Saudi Arabia hotels recorded a five per cent growth in occupancy to 62.8 per cent in December, while ADR edged up 1.9 per cent to 790.17 Saudi riyals and RevPAR increased by 7.1 per cent to 496.25 Saudi riyals.
Hotels in Egypt saw occupancy rise by 16.9 per cent to 47.6 per cent; ADR rose 37.7 per cent to 619.97 Egyptian pounds; and RevPAR increased by 61 per cent to 295.32 Egyptian pounds.
In Cairo and Sharm El Sheikh, RevPAR is anticipated to grow by 35 per cent and 97 per cent respectively in January, according to new report by Colliers, a real estate advisory.
Rising popularity of Sharm Al Shaikh with European visitors and socio-political stability in Cairo are key drivers of growth, Colliers said in its report.
