According to E&Y’s Middle East Hotel Benchmark Survey, Beirut’s hotel occupancy rate increased significantly from 55% in Q1 2016 to 62% in Q1 2017. The uprise in Beirut’s hotel occupancy may be attributed to the improving political situation prevailing in the country. Accordingly, the average room rate in Beirut slightly rose from $139 by March 2016 to $140 by March 2017. The higher average room rate led to a rise in the room yields from $76 by March 2016 to $86 by March 2017.
The best performers in the region were Egypt and Kuwait, as Cairo’s and Kuwait’s hotel occupancy rates edged up by 11 p.p. and 8 p.p. yearly to 70% and 55%, respectively. Over the same period, the largest downturns in 4 and 5 star hotels’ occupancy rate were recorded in Saudi cities, mostly Jeddah and Madinah which decreased by 14 p.p. and 10 p.p.to 55% and 59%, respectively. This plunge in hotel occupancy rates can be attributed to the austerity measures taken by the Saudi government, the fall in corporate travel, and the rise in the Hospitality sector’s supply.
Monthly Hotel Occupancy Rate of Beirut Hotels
Source: E&Y Middle East Hotel Benchmark Survey