According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 42.6% percentage points (pp) by May 2022, up from last year’s percentage of 33.3% while the average room rate in dollars currency has decreased by 28.1% to stand at $57 by May 2022.
On a monthly performance, Beirut occupancy rate progressed by 2.6% in May 2022 compared to May 2021, to reach 52.5%. The average room rate in dollars has decreased by 22.8% from $103 in May 2021 to reach $79 in May 2022 whereas in the Lebanese pound, average room rate has increased by 88.2% to reach LBP 2,487,991 in May 2022. In turn, RevPAR (Revenue per available room) decreased by 18.7% in USD during the same period; $26 in May 2021 to $24 in May 2022 while in Lebanese pound, the RevPAR added 97.9% to stand at LBP 1,307,077 in May 2022.
On a regional level, the occupancy rates in Dubai overall increased by 17.5% yearly to 76.7%. By the same token, the Average room rate and Room yields both increased by 37.4% and 78% to stand at $378 and $290, respectively by May 2022.
Furthermore, in KSA, Riyadh’s hotel occupancy rate increased by 17.5% to reach 62.9% by May 2022, and average room rate added 29.4% to $176 by the same period. However, for Makkah city, the Average room rate decreased by 9% to $191.
Moreover, in Amman, occupancy rate added 23.5% to reach 40.7% by May 2022, average room rate increased by 24.4% to reach $143 per night; likewise room yield grew by 195.4% to $58.
Interesting to mention that despite favorable Mediterranean weather in Lebanon along with cheaper tourism cost, 4- and 5- stars hotels in Middle Eastern countries especially gulf ones seem to attract much more tourism activity as Dubai, Egypt, and Madinah enjoys the top three highest occupancy rates amongst Arab cities. The Hajj season and the continued arrival of pilgrimage during Eid Al Adha boosted the hospitality market performance in Saudi Arabia while Dubai Food Festival which involved over 100 restaurants and initiatives such as the increase in tourist visa duration offered under the Golden Visa category highlighted Dubai as a hub destination for investment, tourism and businesses.
Source: EY, BlomInvest