Jeddah hotels closed the month of August on a high, with 34.5% growth in Revenue Per Available Room (RevPAR) and 40.2% growth in profits, according to the latest HotStats survey of full service hotels by TRI Hospitality Consulting.
Occupancy in Jeddah was up 8.6 percentage point at 70.5% and Average Room Rate (ARR) increased 19.9% to $257.53 in August this year compared to the same period last year. RevPAR for the month posted a growth of 34.5%, and Gross Operating Profit Per Available Room (GOPPAR) increased by 40.2% to $160.38, the highest amongst the seven cities surveyed in the MENA region.
Performance levels in Riyadh however remained subdued as the corporate demand, which is the mainstay of hotels in the city, remained low due to Ramadan and the long Eid holidays. ARR remained unchanged at $225.18, however a 4.9 percentage point drop in occupancy resulted in the Revenue Per Available Room (RevPAR) fall by 14.4% to $65.39, dragging GOPPAR down by 15.6 percentage points to $40.61.
"Jeddah hotels continue to benefit from the strong demand from domestic tourists, especially during the end of Ramadan and the long holidays for Eid-al-Fitr. This year, Jeddah and even Riyadh, to an extent, appear to have benefited from the on-going unrest in the Levant as more Saudi tourists are opting for domestic destinations, driving demand for hotels and entertainment facilities. Obviously, hotels apply effective yielding strategies during these peak periods which is reflected in the growth in RevPAR and GOPPAR in Jeddah," commented Peter Goddard, Managing Director, TRI Hospitality Consulting Middle East.