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GCC cities record positive hospitality performance

Several GCC cities, notably Dubai, Manama, Jeddah and Kuwait City, have recorded positive change in their hospitality key performance indicators (KPIs) in 2013, said a survey.

The Middle East Hotel Benchmark Survey Report by EY found that as many as 2,780 new branded hotel rooms within the four and five star hotel segment were added to Dubai’s hotel supply, which included Ocean View Hotel, the Ritz Carlton extension on Jumeirah Beach, the Oberoi hotel in Business Bay, Sofitel, Anantara on Palm Jumeriah, Conrad Hotel, Movenpick Hotel in JLT and Novotel in Al Barsha.

The emirate’s hospitality market maintained a healthy occupancy rate of 80 per cent through the year, combined with an increase of 6.4 per cent in ADR and an overall RevPar of $223, up 5.9 per cent from the previous year, said Yousef Wahbah, Mena head of Transaction Real Estate at EY.

In December, Dubai recorded an increase in RevPar of 3.4 per cent compared to the same period last year, with occupancy levels dropping marginally by 1.1 per cent from 83.4% in December 2012.

Manama witnessed an increase in RevPar of 10.8 per cent last year, compared to 2012. The average occupancy in the city increased to 42 per cent in December, from 37 per cent the previous year.

These increases can be attributed to the numerous conferences hosted in Manama in December, including the Annual World Islamic Banking Conference, said the survey.

Jeddah recorded a 9.3 per cent increase in RevPar last year, mainly due to an increase in corporate demand in the city, as well as the lack of new supply of four and five star hotel rooms.

The increase can also be credited to the number of conferences held in Jeddah in December, including the Jeddah International Trade Fair, the Linguistics in Arabia Conference, and the 40th ICMM World Congress on Military Medicine event, said the survey.

Kuwait City also witnessed an increase in RevPar of 3.7 per cent in 2013, compared the previous year.

The survey pointed out that as many as 753 new rooms (mix of four and five star hotels) have come online in 2013, including the Jumeirah Messilah Beach Hotel & Spa which commenced operations in the second quarter offering 408 new rooms.

The city also hosted a number of events in December, contributing to its increased RevPar.

Meanwhile, the survey found that Doha’s hospitality market witnessed a decrease in RevPar of 5.4 per cent in 2013 when compared to 2012, mainly due to a decrease in ADR from $265 in 2012 to $252 in 2013.

Doha’s ADR was $245 in December, compared to $301 the previous year, while average occupancy levels remained relatively consistent at 62 per cent. The drop in ADR has decreased RevPar from $190 to $153 over the same period, said the survey.

The Cairo hospitality market registered the largest drop in RevPar last year of 41.2 per cent compared to 2012, due to the continued political uncertainty and security concerns in the city.

Although there was no change in ADR between 2012 and 2013, average occupancy in the city decreased from 38 per cent in 2012 to 22 per cent last year, it added.


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