According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 48% percentage points (pp) by September 2023, down from last year’s percentage of 53.2%. It is important to acknowledge that the occupancy rate in Beirut 4 and 5- stars hotels experienced a decline in September 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 143.4% to stand at $148, additionnally the RevPAR increased by 119.8% to reach $71 for the month of September 2023. Moreover, the average room rate in Lebanese pound has increased significantly by 498.1% ; in details, the average room rate in LBP reached LBP 13,177,040 in September 2023 and RevPAR (Revenue per available room) jumped by 440.1% from LBP 1,171,446 in September 2022 to LBP 6,326,967 in September 2023.
On a regional level, hospitality markets in Makkah and Abu Dhabi witnessed an increase across all performance indicators in September 2023 compared to September 2022. In more details, the occupancy rates in Makkah added 9.7% to reach 71.4% while Abu Dhabi City occupancy rates added 4.6% to reach 78.1%. Makkah’s hospitality sector observed a remarkable RevPAR growth of 55.8% from $110 in September 2022 to $171 in September 2023. Meanwhile, average room rate in Makkah jumped by 34.7% from $177 in September 2022 to $239 by September 2023. As for Abu Dhabi, the average room rate rose by 21.2% from $78 in September 2022 to $94 in September 2023, thus RevPAR increased by 28.8% to stand at $74 during the same period.
Source: EY, Blom Invest Bank
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