Makkah, Riyadh, Madinah record higher hotel occupancy in Q1: EY

Occupancy rates in the Middle East hospitality market - except for Jeddah, Beirut, and Doha - showed a steady growth in Q1 2018, when compared to the same period of 2017, according to the latest EY Middle East Hotel Benchmark Survey Report.

This increase was mainly driven by a number of shopping festivals, improving bilateral relations, and overall pleasant climate conditions across the region.

In Saudi Arabia, Makkah, Riyadh and Madinah reported higher occupancy, while Jeddah witnessed a decrease of 5.7 percent year-on-year (YoY) to 48.7 percent in Q1 2018.

Makkah witnessed a 2.8 percent point rise in occupancy from to 64.3 percent YoY in Q1 2018. However, the ADR fell by 15.2 percent to $114 in Q1 2018 compared. RevPAR dropped 11.4 percent YoY to $74 in the first quarter of the year.

Riyadh hospitality market witnessed growth across the board with its occupancy increasing by 3.9 percent points to 60.9 percent in Q1 2018. The ADR edged up 0.1 percent, which resulted in an increase in RevPAR from $108 in Q1 2017 to $116 in Q1 2018.

Occupancy in Madinah grew by 6.8 percent YoY to 71.4 percent in Q1 2018. The ADR decreased by 8.7 percent YoY to $165 in Q1 2018. RevPAR rose to $117 in Q1 2018 from a year earlier.

Jeddah, however, witnessed a decline in average daily rates (ADR) by 5 percent from $197 in Q1 2017 to $187 in the same period of this year, leading to a 15 percent drop in RevPAR to $91 in Q1 2018.

Elsewhere, Dubai achieved the highest occupancy, average room rate and RevPAR in the MENA region. The city’s occupancy reached 86.9 percent with an ADR of $293, which led to an overall RevPAR of $255 in Q1 2018.

In Bahrain, occupancy recorded a 10.6 percent point increase to 59.7 percent in Q1 2018 from 49.1 percent a year earlier. 

The Kuwait hospitality market saw a 2.5 percent point increase YoY in occupancy to 67.5 percent in Q1 2018.

In Muscat, occupancy increased by 1.1 percent points YoY to 84.4 percent in Q1 2018.

“The performance across the MENA region in Q1 2018 saw a steady growth influenced by positive factors such as countries like the UAE, KSA and Bahrain improving their international trade relations,” Yousef Wahbah, MENA Real Estate, Hospitality and Construction Sector Leader, said.