Hotels’ RevPar declines 31.4 per cent in 2009
Even as the hotels in the UAE saw occupancy levels rising in December for the first time in months, by 1.7 per cent to 65.5 per cent during the month, compared with the same period in previous year, Dubai hotels reported the largest RevPar decline of 31.4 per cent to $163.31 in 2009, according to the hospitality research firm, STR Global.
The overall occupancy of Middle East hotels in 2009, meanwhile, dropped 10.9 per cent to 62 per cent; average daily rate (ADR) decreased 2.7 per cent to $153.91; and revenue per available room (RevPAR) decreased 13.3 per cent to $95.44, reporting year-end decreases in all three key measurements.
Dubai also emerged as one of only three markets which experienced ADR decreases as the emirate saw declines of 23.7 per cent to $235.48, followed by Istanbul, Turkey (-12.2 per cent to $199.30), Cairo, Egypt (-3.3 per cent to $128.86) also witnessing decreases, according to the STR Global report.
However, for the month of December alone, the region’s occupancy fell 2.4 per cent to 56.8 per cent, ADR dropped 5.6 per cent to $166.53, and RevPAR was down 7.9 per cent to $94.53.
“The Middle East-Africa region currently lags behind the other in terms of RevPar recovery,” said Elizabeth Randall, Managing Director of STR Global.
She added: “However, as the region entered the downturn later than Europe, Asia-Pacific and North America, we believe this only to be a time lag until the Middle East and Africa follows the other regions on the recovery path. Overall, the Middle East and Africa finished 2009 with 13.3 per cent RevPar decline but still reported the highest RevPAR ($95.44) of all world regions.”
Meanwhile, among the key markets in the region, Riyadh reported the largest occupancy increase, rising 18.9 per cent to 52.6 per cent, according to the study, followed by Istanbul (+15.1 per cent to 54.2 per cent) and Amman, Jordan (+13.9 per cent to 50.9 per cent).
Whereas, two markets ended the month with double-digit occupancy decreases: Abu Dhabi, (-21.2 per cent to 52.9 per cent), and Beirut (-11.6 per cent to 69.1 per cent).
Beirut, on the other hand, reported the largest increases in all three key metrics for the year, with the market’s occupancy rising 27.5 per cent to 70.9 per cent; ADR increasing 27.2 per cent to $205.23, and RevPar jumping 62.1 per cent to $145.53.
And Muscat, Oman, posted the largest occupancy decrease, falling 21.1 per cent to 53.6 per cent, followed by Riyadh, Saudi Arabia, with a 17.9 per cent decrease to 58.3 per cent.
In the January-November 2009 period Dubai hotels saw their RevPar dropping to $163.36, recording a decline of 32.3 per cent over the same period in 2008, the Deloitte analysis of STR Global data of hotel performances in the Middle East, revealed recently.
The emirate’s hotels saw their occupancy levels dropping to 69.2 per cent in the 11 months period ended November 2009, declining by 11.8 per cent compared to the same period in 2008.
The Middle East hotels achieved a RevPar of $125.37 compared to $81.64 in Europe and $55.89 in the Americas during January-November 2009 period.
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