Beirut’s Hotel Occupancy Rate Steadied by October 2016

According to Ernest and Young’s Hotel Benchmark Survey, Beirut hotel occupancy rate steadied at 58% by October 2016, when compared to the same period last year. However, this was accompanied with hotels decreasing their room rates as revealed by both the average rate per room and the revenue per room that each dropped by a similar 16.5% y-o-y to reach $138 and $80, respectively.

The best performer in the region was Cairo, where hotel occupancy rates increased by 15 p.p to 63% at end October 2016. This rise was accompanied by annual upturns of 13.7% and 48.8% in the average rate per room and revenue per room, which reached $128 and $80, respectively. As such, this progress can be partly attributed to the improving economic and political statuses in Egypt.

However, both Madina and Kuwait witnessed the largest losses in hotel occupancy rates of 4 and 5 star hotels. In details, Madina’s hotel occupancy rate and revenue per room slid 14 p.p to 61%, and 14.1% to $147, respectively, while average rate per room inclined by a yearly 5.7% to $238. Similarly, Kuwait observed a fall across hotel occupancy rate and revenue per room, where the former fell 9 p.p to 38%, and the latter plunged 16.4% to $102. Nonetheless, average rate per room rose to $266.

As for the month of October alone, most of the hotels in the MENA region witnessed a downturn in occupancy rates as this is considered a low season for tourism. As such, Beirut’s hotel occupancy dropped by a marginal 1 p.p to stand at 54%.

Monthly Hotel Occupancy Rates in Lebanon

Beirut’s Hotel Occupancy Rate Steadied by October 2016

Source: E&Y Middle East Hotel Benchmark Survey

 

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