Beirut’s Hotel Occupancy Rate Reached 63% in July 2016

According to Ernest and Young’s Hotel Benchmark Survey, most of the countries observed improvements in occupancy rate levels y-o-y in July 2016. Due to the multitude of events and festivals held across the country, Beirut hotel occupancy rate increased from 58% in July 2015 to 63% in July 2016. This was coupled to hotels decreasing their room rates as revealed by average rate per room that dropped by 23.7% y-o-y from $190 in July 2015 to $145 in July 2016. Accordingly, revenue per room also witnessed a downtick of 16.5% y-o-y to $92 in July 2016.

The best performer in the region was Cairo, where its occupancy rates increased by 29 p.p to 68% in July 2016. This rise was accompanied by respective upturns of 8.5% and 97 % in the average rate per room and revenue per room, which reached $144 and $98, respectively. As such, this progress can also be attributed to increasing number of nationals living abroad coming to visit family during the summer holiday.

However, since the holy month of Ramadan did not coincide in the same period during 2015 and 2016, Madinah and Makkah’s hospitality markets’ performances fell back in July 2016 compared to the same period in 2015. In details, Makkah’s hotel occupancy rate, average room rate, and revenue per room slid 21 p.p to 34%, 29.3% to $464, and 56.4% to $159, respectively. Similarly, Madina observed a fall across all Key Performance Indicators (KPI’s), where its hotel occupancy rates, ADR, and RevPAR plunged by 26 p.p to 47%, 14.5% to $260, and  44.7% to $123, y-o-y, respectively.

Due to Eid Al Fitr Holiday, the UAE maintained the highest hotel occupancy rate, with both Dubai and Abu Dhabi’s rates climbing 6.2 p.p to 67.4% and 7 p.p to 68% y-o-y in July 2016.

Monthly Hotel Occupancy Rates in Lebanon

Beirut’s Hotel Occupancy Rate Reached 63% in July 2016

Source: E&Y Middle East Hotel Benchmark Survey

 

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