According to Ernst and Young’s Hotel Benchmark Survey, following the shocking resignation of PM Saad Hariri, which shook the Lebanese political scene, Beirut’s hotel occupancy rate in December 2017 dropped by 9 percentage points (p.p) to stand at 54%, compared to 63% in the same period last year.
Still, on a year-to-date basis, Beirut’s hotel occupancy rate recorded a 4% increase in 2017 to stand at 64%, compared to the same period last year. The average room rate and the revenue per room increased by 7% and 15% y-o-y to reach $151 and $96, respectively.
Regionally, events such as the 38th Gulf Cooperation Council’s (GCC) Summit and Gulf Defense and Aerospace Exhibition and Conference, in December 2017, contributed to the increase in hotel occupancy in Kuwait. Hence, the month of December improved the performance of the hotels in 2017. Kuwait’s hospitality market witnessed an increase in occupancy by 7 points, coupled with an increase in rooms yield by 14% to $117.
However, the worst performer of the region, dropping by 7 p.p, was Jeddah. This can be linked to the oversupply of hotels coupled by political instability. As such, average room rate fell by by 5% to $266 and rooms’ yield fell by 14.5% to $170.
Monthly Hotel Occupancy Rates in Beirut (in %)
Source: E&Y Middle East Hotel Benchmark Survey