According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Lebanon’s 4- and 5-star hotels reached 65% by February 2019, compared to 54.9% during the same period last year.
In fact, Lebanon recorded upticks across the board. In details the ARR and Revenue per Available Room (RevPar) climbed from $174 and $95 by February 2018 to $192 and $125, respectively, by February 2019. This may be attributed to the increase in tourist arrivals during the high demand season, formation of the new government and Saudi Arabia’s lift of a 15-month-old travel warning to Lebanon in mid-February 2019.
Over the same period, national developments in Cairo placed the country among the top regional performers by February 2019. In details, Cairo’s hotel occupancy rate rose by 3.5 p.p to stand at 76.8% as its average room rate (ARR) and the rooms yield recorded rises of 9.1 p.p and 14.3 p.p to $108 and $83, respectively by February 2019. Several events and conferences such as Egypt Petroleum Show and Egy Stitch & Tex (International Textile & Garment Machinery Fair) may have contributed to the sector’s growth during this period.
Meanwhile, Kuwait’s hospitality market was the worst regional performer by February 2019, with Kuwait’s hotel occupancy witnessing steep drops across the board. In details, the hotel occupancy contracted by 9.2 p.p to 59.1%, as the average room rate and the revenue per available room (RevPar) both declined by 10 p.p and 22.1 p.p to $185 and $109, respectively. The decline in Kuwait’s hospitality market performance may be attributed to the continued lower number of Saudi Arabian travelers visiting the country and diminished government spending. The sector however shows long term promise as the country is looking to diversify its economy and position itself as an international business and financial hub, in-line with Kuwait Vision 2035.
In the month of February, Beirut’s hotel occupancy rate also grew to 70.7% compared to 61.3% in February 2018. As such, the ARR and RevPar increased from $171 and $105 to $187, and $132, respectively.
Monthly Occupancy Rates in Beirut’s 4- and 5- star Hotels
Source: The Middle East Hotel Benchmark Survey