According to Ernst & Young Middle East hotel benchmark survey, Lebanon’s hotel occupancy rate registered 55% by February 2016, up from 53% by February 2015. Among the MENA countries, Lebanon ranked ahead of Jordan (45%), Kuwait (41%) and Bahrain (54%), but lost to Dubai (86%), Qatar (70%) and Oman (75%). As expected, Dubai remained at the top of MENA countries; however occupancy rate of 4- and 5-stars hotels lost 2 percentage points (p.p.) on a yearly basis by February 2016.
The best performers of the region were Egypt and Bahrain as Cairo’s and Manama’s occupancy rates edged up by yearly 16 p.p. and 7 p.p. to 63% and 54%, respectively. The progress in these countries is mainly attributed to their relatively improving economic and political outlook. Over the same period, the largest downturn in 4 and 5 star hotels’ occupancy rate was recorded in Saudi cities mostly Makkah and Madinah which respectively decreased by 15 p.p. and 10 p.p.to 52% and 67%,respectively.
Back to Lebanon, Beirut’s hotel occupancy rate increased by 2 percentage points (p.p.) by February 2016. The Average Room Rate and Revenue per Available Room (RevPar) lost yearly 16.7% and 14.3% to $142 and $79, respectively. Not surprisingly, Dubai’s ADR and RevPar were the highest in the region at $317 and $250 respectively, despite the 8.5% and 10.7% yearly downticks witnessed over the same period.
Lebanon’s Monthly Occupancy rates
Source: EY Middle East Hotel Benchmark Survey