Hotel industry in MEA region depicts mixed performance in March 2014

Posted: May 5, 2014 in travel & tourism

The Middle East/Africa (MEA) region reported mixed performance results during March 2014 when reported in U.S. dollars, according to data compiled by STR Global.

The hotel industry of the region reported a 0.7-percent decrease in occupancy to 66.9 percent, a 2.1-percent increase in average daily rate to US$178.18 and a 1.4-percent increase in revenue per available room to US$119.19.

“The Middle East is once again driving the positive growth in the region”, said Elizabeth Winkle, managing director of STR Global. “Northern Africa is reporting decreases, while Southern Africa’s performance remains flat. Market performance across the region is very mixed. Doha, Dubai and Muscat have achieved occupancy levels over 80 percent, but other markets, including Beirut, Cairo, Riyadh and Sandton, posted occupancies of 38.9 percent, 37.6 percent, 71.8 percent, and 67.9 percent, respectively”.

“Cape Town, host of the 2010 World Cup, is showing favourable performance for March”, Winkle continued. “Since October 2011, the market has reported ADR growth every month, edging closer to the ADR levels achieved during the World Cup. With March posting occupancy of 79.4 percent, the market is closing the gap to its pre-global financial crisis occupancy peak of 82.4 percent achieved in March 2008. The limited supply growth of 1 percent since 2010 is aiding the recovery”.

During the first quarter, the Middle East/Africa region’s occupancy increased 1.2 percent to 65.5 percent; its ADR was up 2.9 percent to US$179.74; and its RevPAR rose 4.2 percent to US$117.72.

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