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STR Global: Middle East/Africa hotel results for August 2015

Kuwait reported negative results in the three key performance metrics

Hotels in the Middle East/Africa region reported negative results in the three key performance metrics when reported in U.S. dollar constant currency, according to August 2015 data compiled by STR Global.

Compared to August 2014, the Middle East/Africa region reported a 1.1 per cent decrease in occupancy to 62.9 per cent, a 1.6 per cent drop in average daily rate to US$134.53 and a 2.7 per cent decline in revenue per available room to US$84.57.

Performance of featured countries for August 2015 (local currency, year-over-year comparisons):

Kuwait reported negative results in the three key performance metrics. Occupancy in the country declined 7.8 per cent to 39.6 per cent; ADR was down 6.0 per cent to KWD65.75; and RevPAR decreased 13.3 per cent to KWD26.04. August supply growth (+6.2 per cent) in the country outpaced demand (-2.1 per cent). Year to date, however, demand (+8.3) has outweighed supply (+4.1 per cent).

Oman saw decreases in the three key performance measurements with a 3.7 per cent decline in occupancy to 47.5 per cent, a 6.9 per cent drop in ADR to OMR65.19 and a 10.4 per cent decrease in RevPAR to OMR30.94. According to STR Global analysts, the months during and post-Ramadan have produced weak performance results in Oman during the last five years. Over the same years, performance has improved in September and October.

South Africa reported nearly flat occupancy performance (+0.5 per cent to 62.7 per cent) and increases in ADR (+4.3 per cent to ZAR994.53) and RevPAR (+4.8 per cent to ZAR623.76). The lack of significant change in occupancy came as supply (+0.9 per cent) and demand (+1.3 per cent) saw similar movement in August. According to STR Global analysts, ADR and RevPAR were up due to inflation and a weakened South African Rand.

Performance of featured markets for August 2015 (local currency, year-over-year comparisons):
Amman, Jordan, saw declines in the three key performance metrics: occupancy (-7.1 per cent to 63.4 per cent), ADR (-5.5 per cent to JOD111.49) and RevPAR (-12.2 per cent to JOD70.71). Year to date in Amman, supply growth (+2.7 per cent) has significantly outperformed demand (-13.9 per cent).

Cape Town, South Africa, experienced a 2.0 per cent decrease in occupancy to 60.0 per cent but increases in ADR (+6.2 per cent to ZAR1,138.41) and RevPAR (+4.1 per cent to ZAR682.90). STR Global analysts believe that hotels in Cape Town have increased rate to counter a 5.6 per cent year-to-date drop in occupancy. The decline in occupancy can be attributed to year-to-date supply (+2.0 per cent) outweighing demand (-3.7 per cent).

Doha, Qatar, reported decreases in occupancy (-6.7 per cent to 61.1 per cent) and RevPAR (-5.9 per cent to QAR387.24). ADR in the market was up 0.8 per cent to QAR633.75. Year-to-date supply (+2.4 per cent) has outperformed demand (+0.1 per cent) in Doha, and August produced the market’s largest supply increase of 2015 (+6.3 per cent). Development growth in Doha can be attributed to the Qatari tourism sector’s continued commitment to the 2022 World Cup and National Vision 2030.

Additional performance data
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