According to the latest report published by Ernst & Young, Beirut’s hotel occupancy fell to 58.9% during the first half of 2018, compared to 61.9% registered during the same period last year. In details, the average room rate (ARR) recorded an uptick by 2.5% to $182 while the Rev per room of 4 and 5 stars hotels shrank by a similar 2.5% to $107 by June 2018. The decrease in the Hotel occupancy rate is mainly linked to the yearly 7.7% decline in the number of Arab tourists, knowing that Arabs are Lebanon’s largest spenders and are therefore the most likely to stay in 4- and 5- stars hotels.
On the occasion of Eid al Fitr in June 2018, hotel occupancy rate rose by a yearly 16.8p.p to 60.9%. As such, the ARR and RevPar increased from $207 and $92 to $220, and $134, respectively.
Over the same period, hospitality markets of Cairo and Ras al Khaimeh (RAK) witnessed a growth in all key indicators in H1 2018 when compared to H1 2017. In Cairo, the increasing stability on the political front coupled with the government’s support to the tourism sector constituted the main rebound in Egypt’s hospitality market. As such, Cairo’s hospitality market observed an increase in occupancy by 6.3p.p, to reach 68.3% in H1 2018. Moreover, Cairo’s ADR and RevPar rose by 8.1% and 19.1% respectively to stand at $101 and $69.
As for RAK, it witnessed a 5.7% increase in RevPAR and a rise of ADR by 5.5% to $168 in H1 2018 while the occupancy rate reached 54.2%.
Monthly Occupancy Rates in Beirut’s 4- and 5- star Hotels
Source: EY Middle East Hotel Benchmark Survey