According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 44.6 percentage points (pp) by September 2021, up from last year’s registered 21.6% during the same period.
On a monthly performance, Beirut occupancy rate recorded an uptick of 1.9% in September 2021 from September last year, to reach 45.4%. Furthermore, the average room rate has increased by 345.9% from 194,844 Lebanese pounds in September 2020 to reach 868,727 Lebanese pounds in September 2021, equivalent to drop of 55.5 % in USD; 158$ in September 2020 to 70$ in September 2021.
As such, RevPAR (Revenue per available room) surged by 426.6% in LBP during the same period; 102,702 Lebanese pounds in September 2020 to 540,870 Lebanese pounds in September 2021, equivalent to drop of 53.5% in USD from 68$ in September 2020 to 32$ in September 2021.
On a regional level, the occupancy rates in Dubai overall increased by 17.9% year-to-date (YTD) to 58.5%. By the same token, the Average room rate and Room yields both increased by 8.6% and 56.6% to stand at $209 and $122, respectively by September 2021.
In turn, in KSA, Riyadh’s hotel occupancy rate increased by 2.6% to reach 53.8% by September 2021, and average room rate decreased by 10% to $127 by September 2021. However, for Makkah city, the Average room rate increased by 53.8% to $162.
Moreover, in Amman, occupancy rate dropped by 2.6% to reach 28.6% by September 2021, average room rate increased by 23.2% to reach $134 per night, moreover room yield increased by 13.2% to $38.
Undoubtedly, cheaper Lebanon attracted tourists and diaspora for summer days of 2021. Consequently, the occupancy rate improved in September where most likely Lebanese and some tourism presence were significantly noticed during this period. Indeed Lebanon has become cheap for many and the outlook for tourism and hotel industry would be positive, however a stable political situation is essential to maintain prosperity for this industry.
Source: EY, BlomInvest