According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 53.5% percentage points (pp) by September 2022, up from last year’s percentage of 44.6% while the average room rate in dollars currency has decreased by 12.1% to stand at $60.8 by September 2022.
On a monthly performance, Beirut occupancy rate increased by 23.2% in September 2022 compared to September 2021, to reach 68.5%, compared to an occupancy rate of 64% and 75% respectively in the previous months of August and July. Furthermore, the average room rate in dollars has increased by 6.9% from $64.1 in September 2021 to reach $68.6 in September 2022, whereas in the Lebanese pound, average room rate has increased by 138.2% to reach LBP 2,488,682 in September 2022. In turn, RevPAR (Revenue per available room) increased by 61.5% in USD during the same period: $29.1 in September 2021 to $47 in September 2022 while in Lebanese pound, the RevPAR added 259.7% to stand at LBP 1,705,313 in September 2022.
On a regional level, the occupancy rates in Dubai overall increased by 12.5% yearly to 70.3%. By the same token, the Average room rate and Room yields both increased by 34.1% and 63% to stand at $294.9 and $207.3, respectively by September 2022.
Furthermore, in KSA, Makkah and Madinah’s hotel occupancy rate increased respectively by 40.7% and 33.4% to reach 61.8% and 69.7% in September 2022; whereas, Riyadh’s hotel occupancy rate increased at a slower pace of 5.2% to reach 58.9% by September 2022. The average room rate reached the highest value in Jeddah at $243 by September 2022, followed by Makkah and Riyadh where the average room rate reached respectively $177 and $167 by September 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 Muscat, occupancy rate added 21.9% to reach 47.9% by September 2022, average room rate increased by 51.1% to reach $116 per night; likewise room yield grew by 178% to reach $55.5.
With the festive holiday season fast-approaching, hoteliers are reporting an upsurge in bookings compared to last year. In fact, decorative lights and trees, traditional markets, music festivals, and other popular events and activities were set to lift the nation’s gloom as Lebanese, expats, and foreign trippers were expected to flood into Beirut and coastal resorts.
Source: EY, BlomInvest