According to the latest report published by Ernst & Young, Beirut’s hotel occupancy rose to 61.5% during the first two months of 2017 compared to 56.3% registered during the same period last year. This drop is mainly attributed to the improving Lebanese climate following the major political breakthroughs that took place by the end of 2016 and the stabilization of the security situation in the country.
Over the same period, the top performers in the region were Cairo and Kuwait, whose hotel occupancy rates respectively rose by 6 percentage points (p.p) and 6.2 p.p to 69.2% and 51.2%. Still, Dubai maintained the highest hotel occupancy rate recorded in the region at 86.9%, closely followed by each of Abu Dhabi (80.0%) and Muscat (71.5%). As for the worst performers, Saudi cities witnessed the steepest drops with Jeddah and Madinah’s hotel occupancy rates decreasing by 12.1% and 8.5% to 56.2% and 58.6%, respectively.
Back to Beirut, the average room rate (ARR) slipped by a mere 0.4% to $140, while the revenue per available room (RevPar) in 4- and 5- stars hotels rose by 8.7% to $86. In Egypt, 4- and 5- stars hotels in Cairo saw their ARR and RevPar surge from $38 and $24 to $85 and $59, respectively, which could be partly attributed the devaluation of the Egyptian Pound.
In February alone, Beirut’s hotels recorded the best performance in the region after their occupancy rate rose by 9.7 p.p to 66.7%. Even though their ARR slipped 1.3% y-o-y to $137, RevPar in Beirut hotels grew by 15.5% to $91.
Monthly Occupancy Rates in Beirut’s 4- and 5- star Hotels
Source: The Middle East Hotel Benchmark Survey