According to Ernest and Young’s Hotel Benchmark Survey, some regional hospitality markets dipped by Sept.2017, compared to the same period last year. However, four and five-star hotels mainly in Beirut and Kuwait were amongst the best performers.
In Lebanon, Beirut’s hotel occupancy rate increased from 58.9% by Sept. 2016 to 65.2% by Sept. 2017. As such, Room yields in Beirut rose from $83 by Sept. 2016 to $99 by Sept.2017, while the average room rate increased from $141 to $152, over the same period. The positive performance in Beirut continued during summer 2017, on the back of Eid El Adha falling by end-August to September 2nd 2017, and the removing of the travel ban set by the GCC countries since Q1 2017.
In Kuwait, the improvement was mainly recorded in the rise of the hotel occupancy rate by an annual 6.1 percentage points (p.p.) to stand at 47.4%. Many works are underway in the country to expand the national airport and new hotels were launched as the government expects more tourists over the next few years. As such, room yields jumped by 8.6% to $107, while the average room rate retreated from $238 to $225 by Sept.2017.
On the other hand, hotel occupancy rates in Doha contracted by 0.9 p.p. to reach 59.5% by Sept.2017 as a result of the ongoing diplomatic crisis between Doha and the GCCs. Doha’s Room yields and average room rate declined by 9.3% and 8% to stand at $106 and $179, respectively.
Similarly, hotel occupancy rates in the UAE continued their decline over the hot summer weather. In details, hotel occupancy rates in overall Dubai (which includes: Dubai Beach, Dubai City and Dubai Apartment Hotels) fell by 1.5 p.p. to $75.8%, as Rooms yield slipped by a yearly 6.4% to $175 by Sept. 2017 and Average room rate retreated by 4.5% to $231 over the same period.
Monthly Hotel Occupancy Rates in Lebanon
Source: E&Y Middle East Hotel Benchmark Survey