According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 45.2% percentage points (pp) by July 2023, down from last year’s percentage of 49.4%. It is important to acknowledge that the occupancy rate in Beirut 4 and 5- stars hotels experienced a decline in July 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 rose substantially by 98.1% to stand at $133, additionnally the RevPAR increased by 81.2% to reach $60 for the month of July 2023. Moreover, the average room rate in Lebanese pound has increased significantly by 491.3% ; in details, the average room rate in LBP reached LBP 11,968,281 in July 2023 and RevPAR (Revenue per available room) jumped by 440.8% from LBP 1,000,000 in July 2022 to LBP 5,407,000 in July 2023.
On a regional level, hospitality markets in Makkah and Kuwait City witnessed an increase across all performance indicators in July 2023 compared to July 2022. In more details, the occupancy rates in Makkah added 14% to reach 72.1% while Kuwait City occupancy rates added 11.8% to reach 55.9%. Makkah’s hospitality sector observed a remarkable RevPAR growth of 62.7% from $435 in July 2022 to $708 in July 2023. Meanwhile, average room rate in Makkah jumped by 31% from $750 in July 2022 to $982 by July 2023. As for Kuwait City, the average room rate dropped by 26.4% from $73 in July 2022 to $54 in July 2023, thus RevPAR declined by 6.7% to stand at $30 during the same period. Indeed, Kuwait City is well known as an oil producer country but also in terms of tourism, it has a lot to offer, such as the dazzling Kuwait Towers, modern architecture, peaceful beaches and rich culture.
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