According to the monthly hotel occupancy rates published by E&Y’s Hotel Benchmark Survey, all countries in the region witnessed drops in occupancy rates y-o-y in June 2016, the worst being Amman, followed by Beirut, mainly on account of the instability in neighboring countries. Amman’s hospitality market witnessed a downfall in June 2016, with a 49.9% drop in RevPAR compared to June 2015, mainly due to the fall in occupancy rate from 52% in June 2015 to 27% in June 2016.
In June 2016, Makkah’s hospitality market was the only one to observe a rise across all Key Performance Indicators (KPI’s), where its hotel occupancy rates, RevPAR, and ADR increased by 8 p.p, 85.1%, and 60%, y-o-y, respectively. These increases can be justified by the visiting worshippers and umrah pilgrims during the holy month of Ramdan.
In June 2016, Beirut’s hotel occupancy rate fell from 58% in June 2015 to 44%. As such, this fall in occupancy rate was complemented by a drop of 18.7% in the average room rate, as it dropped from $152 in June 2015 to $124 in June 2016, the highest drop in prices when compared to countries of the Arab region. Accordingly, the rooms’ yield fell by 38.6% y-o-y to reach $55 for the sixth month of the year.
While the UAE maintained the highest hotel occupancy rate, both Dubai and Abu Dhabi witnessed a fall in occupancy rates of 14 p.p and 11 p.p, respectively. This drop can be attributed to the rise in hotel room supply as well as the fall in tourist inflows due to the high temperatures during the summer.
Monthly Hotel occupancy Rates in Lebanon
Source: E&Y Middle East Hotel Benchmark Survey