Gulf hotels record occupancy and RevPar increases in July

Gulf hotels recorded year-on-year increases occupancy and revenue per average room (RevPar) in July largely thanks to the Eid Al Fitr holiday, according to a new study

EY’s Hotel Benchmark Survey noted increased performance in both metrics across the market, with the exception of Saudi Arabia due to the change of the holy month compared to the previous year.

In the UAE, Dubai recorded a 6.2 per cent increase in occupancy and a 4.5 per cent increase in RevPar from $108 in July last year to $113 this year.

However, the average daily rate, representing the average rental income per paid occupied room, decreased from $177 to $168.

Read: Dubai hotels see 86% occupancy in May, but RevPAR drops

In Abu Dhabi occupancy increased from 61 per cent to 68 per cent and Ras Al Khaimah saw average occupancy increase from 48.2 per cent to 65.7 per cent resulting in a 27.4 per cent rise in RevPar.

The highest occupancy during the period was seen in Jeddah at 81 per cent, but this was down from the 84 per cent seen last year.

Elsewhere in the Middle East, Beirut,Lebanon saw occupancy increase from 58 per cent last year to 63 per cent this year, but ADR dropped by 23.7 per cent. This resulted in RevPar dropping from $111 to $92.

Average occupancy in Cairo increased by 29 per cent, and ADR increased from $133 to $144, with RevPar rising from $53 to $98.

EY said hotel performance across the Middle East was expected to dip in August and September but should improve again before the end of the year.

Despite the increases there are concerns that increasing room supply in some Gulf markets could impact occupancy and RevPar in the coming years.

Read: Flight to affordability to hit GCC hotel rates