Report shows .1m rooms to be added in MEA region in July

Posted: August 27, 2013 in travel & tourism

The Middle East/Africa hotel development pipeline comprises 485 hotels totalling 118,535 rooms, according to the July 2013 STR Global Construction Pipeline Report. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Pre-Planning stage.

Among the countries in the region, Oman reported the largest expected supply growth (+59.9 percent) of all 4,577 rooms in the total active pipeline open. Five other countries also reported expected supply growth of more than 15 percent: Saudi Arabia (+56.8 percent with 31,518 rooms); Qatar (48.7 percent with 7,671 rooms); United Arab Emirates (+33.2 percent with 32,261 rooms); Kuwait (+21.5 percent with 1,418 rooms); and Jordan (+16.6 percent with 2,972 rooms).

Meanwhile, the figures for June in the hotel industry of the region showed positive performance results as reported in U.S. dollars by the STR.

The region reported a 5.9-percent increase in occupancy to 61.8 percent, a 4.0-percent increase in average daily rate to US$141.21 and a 10.1-percent increase in revenue per available room to US$87.21.

During the first half of 2013, the region reported increases in all three key performance metrics for the hotel industry. Its occupancy rose 4.9 percent to 63.7 percent, its ADR was up 2.9 percent to US$166.64 and its RevPAR increased 8.0 percent to US$106.19.

“Hotel industry in the Middle East /Africa region achieved an 8-percent RevPAR increase in the first part of 2013, growing both in occupancy and ADR terms”, said Elizabeth Winkle, managing director of STR Global. “Lebanon continues to suffer collateral damage due to its geographic proximity to Syria. Year-to-date June 2013 hotels in the capital of Beirut have achieved an occupancy level of 53 percent, which is 10 percent lower than the same time last year, and an ADR of US$156.00, 21 percent lower than last year.

“Mauritius, which shares the Indian Ocean with other tropical paradises including the Seychelles, reported YTD occupancy of 63 percent which is a 6.9 percent decline from last year; however, ADR achieved US$227.00—an increase of 8.6 percent.”

Highlights among the region’s key hotel industry markets for June 2013 include (year-over-year comparisons, all currency in U.S. dollars): Doha, Qatar, rose 26.7 percent in occupancy to 63.2 percent, posting the largest increase in that metric, followed by Cairo, Egypt, with a 21.5-percent increase to 51.5 percent; Nairobi, Kenya (-3.8 percent to 63.8 percent), and Riyadh, Saudi Arabia (-3.6 percent to 54.1 percent), posted the largest occupancy decreases in June; Two markets experienced double-digit ADR growth: Jeddah, Saudi Arabia (+14.1 percent to US$260.01), and Muscat, Oman (+10.0 percent to US$168.26).

Others are: Beirut, Lebanon (-18.4 percent to US$162.54), and Sandton, South Africa, and the surrounding areas (-11.4 percent to US$110.37), posted the largest ADR decreases for the month; Three markets achieved RevPAR growth of more than 20 percent: Muscat (+24.6 percent to US$98.27); Doha (+23.5 percent to US$119.52); and Cairo (+23.3 percent to US$52.56).


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