According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 36% percentage points (pp) by April 2023, down from last year’s percentage of 39.1%. It is important to acknowledge that the occupancy rate in Beirut 4 and 5- stars hotels experienced a decline in April 2023 due to a preference among tourists and expats for booking guesthouses and Airbnb accommodations. In fact, a significant number of guesthouses located near the beach are reserved well in advance for the summer season.
In more details, the average room rate in dollars currency in Lebanon has decreased by 7% to stand at $52.4 while the RevPAR dropped by 14.4% to reach $18.9 for the month of April 2023. Moreover, the average room rate in Lebanese pound has increased significantly by 235.6% due to the sharp deterioration of the national currency despite the drop in room rate in dollars prices. In details, the average room rate in LBP reached LBP 5,074,294 in April 2023 while RevPAR (Revenue per available room) jumped by 208.9% from LBP 591,740 in April 2022 to LBP 1,827,889 in April 2023.
On a regional level, hospitality markets in Makkah and Muscat witnessed an increase across all performance indicators in April 2023 compared to April 2022. In more details, the occupancy rates in Makkah added 17% to reach 81.6% while Muscat occupancy rates added 14.8% to reach 61.9%. Makkah’s hospitality sector observed a remarkable RevPAR growth of 58.5% from $134.9 in April 2022 to $213.9 in April 2023. Meanwhile, average room rate in Makkah jumped by 25.5% from $208 in April 2022 to $262 by April 2023. As for Muscat, the average room rate added 8% from $129 in April 2022 to $139 in April 2023 which resulted in a notable RevPAR growth of 42% from $61 to $86 during the same period. In fact, recently Oman announced visa-free entry for over 100 countries, in order to encourage more tourists to visit the country. Additionally, the country is known for its natural beauty, rich history, and unique culture.
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