According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 46.3% percentage points (pp) by August 2023, down from last year’s percentage of 51.3%. 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 118.2% to stand at $144, additionnally the RevPAR increased by 96.9% to reach $67 for the month of August 2023. Moreover, the average room rate in Lebanese pound has increased significantly by 495.9% ; in details, the average room rate in LBP reached LBP 12,846,731 in August 2023 and RevPAR (Revenue per available room) jumped by 437.7% from LBP 1,105,000 in August 2022 to LBP 5,943,000 in August 2023.
On a regional level, hospitality markets in Makkah and Kuwait City witnessed an increase across all performance indicators in August 2023 compared to August 2022. In more details, the occupancy rates in Makkah added 12% to reach 72.5% while Kuwait City occupancy rates added 11.8% to reach 55.2%. Makkah’s hospitality sector observed a remarkable RevPAR growth of 59.2% from $113 in August 2022 to $180 in August 2023. Meanwhile, average room rate in Makkah jumped by 32.9% from $187 in August 2022 to $248 by August 2023. As for Kuwait City, the average room rate dropped by 26.6% from $233 in August 2022 to $171 in August 2023, thus RevPAR declined by 6.6% to stand at $94 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.
Source: EY, Blom Invest Bank
Disclaimer:
This article is a research document that is owned and published by Blominvest Bank SAL.
No material from this publication may be modified, copied, reproduced, repackaged, republished, circulated, transmitted or redistributed directly or indirectly, in whole or in any part, without the prior written authorization of Blominvest Bank SAL.
The information and opinions contained in this document have been compiled from or arrived at in good faith from sources deemed reliable. Neither Blominvest Bank SAL, nor any of its subsidiaries or affiliates or parent company will make any representation or warranty to the accuracy or completeness of the information contained herein.
Neither the information nor any opinion expressed in this research article constitutes an offer or a recommendation to buy or sell any assets or securities, or to provide investment advice.
This research article is prepared for general circulation and is circulated for general information only.