According to Ernst & Young Middle East hotel benchmark survey, the occupancy rate in Beirut’s 4- and 5-star hotels reached 41.4% percentage points (pp) by December 2023, down from last year’s percentage of 48.4%. It is important to acknowledge that the occupancy rate in Beirut 4 and 5 stars hotels experienced a decline in December due to the continuing conflict between Israel and Gaza after Hamas attack on October 7, 2023 despite the holiday season in December. In fact, it has rapidly become a cross-border threat for the region given the heightened tensions between Lebanese armed group Hezbollah and Israel.
In more details, the average room rate in dollars currency in Lebanon rose substantially by 192.4% to stand at $149, additionally the RevPAR increased by 150.2% to reach $62 for the month of December 2023.
On a regional level, hospitality markets in Cairo city and Makkah in KSA witnessed an increase across all performance indicators in December 2023 compared to December 2022. In more details, the occupancy rates in Cairo city added 0.3% to reach 71.5% while Makkah City occupancy rates added 7% to reach 74.4%. Makkah’s hospitality sector observed a remarkable RevPAR growth of 44.5% from $111 in December 2022 to $161 in December 2023. Meanwhile, average room rate in Makkah jumped by 30.8% from $165 in December 2022 to $216 in December 2023. As for Cairo city, the average room rate reached $145 by December 2023, thus RevPAR increased by 78.2% to stand at $103 during the same period.
Source: EY, Blom Invest Bank
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