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UAE hotels record highest occupancy rates
GCC hotels emerged as the highest performers in terms of occupancy in May 2016, with hotels in the UAE and Jeddah recording the highest May occupancy rates in the Middle East this year.
Hotels in the UAE recorded the highest occupancy rates in the Middle East but revenues declined, according to EY hotel benchmark report.
Dubai and Abu Dhabi's hospitality markets witnessed a decrease in RevPAR in May 2016. Dubai's hospitality market witnessed a drop in RevPAR from $200 in May 2015 to $186 in May 2016.
Abu Dhabi's hospitality market witnessed a drop in RevPAR by 8.9 per cent in May 2016 when compared to the same period last year, this was mainly due to the drop in ADR from $127 in May 2015 to $115 in May 2016.
Commenting on the survey, Yousef Wahbah, MENA Head of Transaction Real Estate at EY said: "Middle East hotel performance was mixed in the month of May. GCC hotels emerged as the highest performers in terms of occupancy in May 2016, with hotels in the UAE and Jeddah recording the highest May occupancy rates in the Middle East this year."
Wahbah added: "Dubai hotels recorded an average occupancy of 86 per cent, followed by 81 per cent in Abu Dhabi and 74.2 per cent in Ras Al Khaimah (RAK). While occupancy rates remained high in both Dubai and Abu Dhabi, their hospitality markets witnessed a decrease in revenue per average room (RevPAR) of seven per cent and 8.9 per cent respectively in May 2016. This was mainly due to the drop in average daily rates in both cities. Conversely, RAK and Jeddah recorded positive increases in RevPAR, when compared to the same period last year."
Cairo hotels continued their upward trajectory, recording 74 per cent occupancy in May 2016, the highest occupancy since December 2010, RevPAR in the city also increased by 46.5 per cent when compared to May 2015.
In the Levant region, Amman's hospitality market witnessed a jump in ADR from $158 in May 2015 to $179 in May 2016, resulting in a rise in RevPAR by 14.4 per cent in May 2016 when compared to the same period last year.
"Overall, the Middle East hospitality markets are weathering the economic conditions quite well. The favourable weather, regional business conferences and leisure destinations across the region continue to attract tourists into the Middle East," he said. In May 2016, Muscat's hospitality market witnessed an increase in average occupancy of 3 per cent when compared to the same time last year. However, ADR dropped from $188 in May 2015 to $172 in May 2016, resulting a drop in RevPAR by 3.5 per cent.
In May 2016, Jeddah's hospitality market witnessed an increase in average occupancy of 11 per cent when compared to the same time last year. Average daily room rates increased from $268 in May 2015 to $313 in May 2016, resulting in an increase in RevPAR by 33 per cent.
Madina's hospitality market witnessed a decrease in RevPAR of 26.5 per cent in May 2016 when compared to May 2015, this was mainly due to the drop in ADR from $182 in May 2015 to $179 in May 2016, coupled by a slump in average occupancy of 17 per cent in May 2016 when compared to the same time last year.
Doha's hospitality market witnessed a drop in occupancy from 72 per cent in May 2015 to 66 per cent in May 2016, coupled with a decrease in ADR from $250 in May 2015 to $211 in May 2016, causing a drop in RevPAR by 23.2 per cent when compared to the same time last year. The drop in occupancy maybe attributed to government spending cuts that have effected business tourism which constitutes to about 70 per cent of Doha's hotel demand.

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