Middle East, Africa Hotels Post Mixed Performance Results in January

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According to STR, hotels in the Middle East reported mixed performance results in January 2018, while hotels in Africa posted growth across the three key performance metrics.

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U.S. dollar constant currency, January 2018 vs. January 2017

Middle East

  • Occupancy: +1.9% to 69.1%
  • Average daily rate (ADR): -3.4% to US$170.28
  • Revenue per available room (RevPAR): -1.6% to US$117.75

Africa

  • Occupancy: +5.7% to 53.4%
  • Average daily rate (ADR): +2.6% to US$126.55
  • Revenue per available room (RevPAR): +8.4% to US$67.54

Local currency, January 2018 vs. January 2017

Morocco

  • Occupancy: +16.3% to 54.1%
  • ADR: +28.5% to MAD129.16
  • RevPAR: +49.5% to MAD69.90

The year-over-year increase in RevPAR was the first for a January in Morocco since 2014. STR analysts attribute a spike in demand (+16.1%) to the FIA Formula E Championship race in Marrakech as well as Marrakech Marathon.

Nigeria

  • Occupancy: +8.6% to 41.4%
  • ADR: -11.2% to NGN136.09
  • RevPAR: -3.6% to NGN56.38

STR analysts note that Nigeria’s hotel industry continues to be affected by a poor reputation around security concerns in the country. Regardless, the 8.6% year-over-year lift in occupancy was the country’s highest for any January since 2013.

Saudi Arabia

  • Occupancy: +6.4% to 59.5%
  • ADR: -5.2% to SAR566.34
  • RevPAR: +0.9% to SAR336.70

The January school holiday, which fell primarily in February last year, pushed a 16.4% rise in demand. Both occupancy and ADR levels continue to be pressured by supply growth, which rose to 9.3% for the month. As STR reported last week, Saudi Arabia’s hotel development pipeline represents 76% of the existing room supply in the country. However, STR analysts stress the importance of considering the long-term investments being made in tourism and hospitality as part of Vision 2030.

Key January 2018 Takeaways:

  • Morocco performance driven by FIA Formula E Championship race and Marrakech Marathon.
  • Nigeria’s occupancy rises even with security concerns in the country.
  • Saudi Arabia demand increase driven by school holiday.
Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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