Beirut’s Hotel Occupancy Rate reached 49.9% by July 2022

According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 49.9% percentage points (pp) by July 2022, up from last year’s percentage of 42.4% while the average room rate in dollars currency has increased by 17.9% to stand at $67 by July 2022.

On a monthly performance, Beirut occupancy rate fell by 1% in July 2022 compared to July 2021, to reach 75%, nevertheless the occupancy rate was much lower in the previous month of June 2022, standing at 60.4%. Furthermore, the average room rate in dollars has increased by 30.7% from $68 in July 2021 to reach $88 in July 2022, whereas in the Lebanese pound, average room rate has increased by 107.4% to reach LBP 2,660,972 in July 2022. In turn, RevPAR (Revenue per available room) increased by 29% in USD during the same period; $51 in July 2021 to $66 in July 2022 while in Lebanese pound, the RevPAR added 104.7% to stand at LBP 1,995,078 in July 2022.

On a regional level, the occupancy rates in Dubai overall increased by 14.2% yearly to 72%. By the same token, the Average room rate and Room yields both increased by 36.5% and 70.2% to stand at $328 and $236, respectively by July 2022.

Furthermore, in KSA, Makkah and Madinah’s hotel occupancy rate increased respectively by 39.9% and 34.9% to reach 58% and 70.6% in July 2022; whereas, Riyadh’s hotel occupancy rate increased at a slower pace of 7.1% to reach 58.7% by July 2022. The average room rate reached the highest value in Makkah at $200 by July 2022, followed by Riyadh and Madinah where the average room rate reached respectively $170 and $152 by July 2022. In fact, in 2022, post Covid-19 pandemic, Saudi Arabia and specifically Makkah region, has benefitted to a great extent from a huge boom in tourism as they welcome more than one million pilgrims to the Hajj.

Moreover, in Amman, occupancy rate added 21.5% to reach 44.9% by July 2022, average room rate increased by 13.4% to reach $146 per night; likewise room yield grew by 117.7% to reach $66.

Lebanon has historically been a popular holiday destination within the Arab world, famed for its energetic party atmosphere, rich cultural history, and excellent cuisine. During the summer of 2022, after two years of Covid-19 lockdown and economic strife, Lebanon witnessed a robust tourism activity with increasing hotel occupancy rate.

Source: EY, BlomInvest

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