Benchmark. Middle East hotel benchmark survey report

Transcription

1 Benchmark Middle East hotel benchmark survey report April 215 The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across

2 Yousef Wahbah Partner and Head of MENA Transaction Real Estate, Ernst & Young Middle East, UAE EY Middle East hotel benchmark survey We hope you enjoy the April 215 report of the EY Middle East hotel benchmark survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and year-to-date basis in local currencies and US dollars. This monthly Middle East hotel benchmark survey is part of our services to the hospitality sector. The EY Transaction Real Estate Advisory Services team, headquartered in Dubai, is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. Our specialist services include acquisitions, capital sourcing, highest- and best-use studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment,such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center. EY is the largest professional services in 15 countries and is part of the global EY organization with more than 19, people in 15 countries. Page 3: April 215 key performance highlights Page 4: We have highlighted the largest variance on a per-month basis for the various markets over the last12-month period in regards to occupancy, average room rate, and rooms yield Page 5: Dubai overall occupancy, average room rate and rooms yield over the past 12 months Page 6: Monthly performance of various markets compared to the previous year s monthly period in local currency Page 7: Monthly performance of various markets compared to the previous year s monthly period in US dollars Page 8: Year-to-date performance of various markets compared to the previous year. In local currency Page 9: Year-to-date performance of various markets compared to the previous year. In US dollars 2 Benchmark April 215

3 April 215 Key Performance Highlights Hospitality markets in Cairo, Madina and Beirut witnessed a positive increase in April 215 Cairo continues to witness a double digit increase in RevPAR of 78.7% in April 215 when compared to the same period last year. This was mainly due to the increase in average occupancy from 35.% in April 214 to 49.% in April 215, which is ascribed to the Easter break holidays. In April 215, Madina witnessed a jump in average occupancy of approximately 7.% when compared to April 214, coupled with an increase in ADR from US$153 in April 214 to US$192 in April 215, resulting a rise in RevPAR of 36.9% during the same period last year. With the unceasing rise of tourism in Lebanon, Beirut s hospitality market continues to witness moderate growth. Beirut s hospitality market has witnessed an increase in RevPAR of 12.3% in April 215 when compared to the same period last year. This was mainly due to the increase in average occupancy from 51.% in April 214 to 56.% in April 215. Jeddah and Riyadh s hospitality market performance dropped when compared to the same period last year Jeddah s hospitality market witnessed a slight decrease in RevPAR of 9.% in April 215 as compared to April 214, this was mainly due to ADR dropping from US$262 in April 214 to US$257 in April 215, coupled by a slump in average occupancy from 78.% in April 214 to 73.% in April 215. Riyadh s hospitality market continues to drop in April 215, average occupancy declined by 6.% when compared to April 214. ADR dropped from US$224 in April 214 to US$219 in April 215, resulting in a decrease in RevPAR by 9.5% when compared to same period last year. Dubai continues to witness a drop in RevPAR compared to April 214 Hotels across Dubai witnessed a decrease in RevPAR by 12.5% in April 214 when compared to April 215. The city maintained a healthy occupancy of 84.2% in April 215 as compared to 85.4% in April 214, however the drop in ADR from US$326 in April 214 to US$289 in April 215 accounted to the major drop in the overall performance of the market. The overall hospitality market in Dubai has seen a softer performance with the hotels dropping room rates in order to maintain their occupancy levels. Abu Dhabi s hospitality market witnessed a positive increase in all Key Performance Indicators in April 215 In April 214, Abu Dhabi s occupancy increased from 84.% to 86.% in April 215. The surge in occupancy was coupled to US$236 in April 215, which resulted in an increase in RevPAR of 9.1% in April 215 when compared to the same period last year. The increase in occupancy was attributed to Cityscape Abu Dhabi. Benchmark 3

4 Markets with the largest variance on % Occupancy for Amman Hotels 8 Occupancy % April 214 April 215 Occupancy % Average Room Rate for Cairo (US$) Average room rate April 214 April Average room rate RevPAR in Abu Dhabi (US$) 25 Room yield April 214 April Room yield Benchmark April 215

5 Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % April 214 April 215 Occupancy % Average room rate for Dubai Overall hotels (US$) Average room rate April 214 April Average room rate Rev PAR in Dubai Overall hotels (US$) Room yield April 214 April Room yield Benchmark 5

6 Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: April 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP , , % 149, , % Qatar Doha QAR % % Saudi Arabia Jeddah SAR % % Madina SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,719 1, % 1,437 1, % Dubai City AED % % Dubai Overall AED ,61 1, % 893 1, % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall includes Dubai Beach, Dubai City and Dubai Apartment Hotels. Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent Benchmark April 215

7 Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: April 215 Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi US$ % % Dubai Beach US$ % % Dubai City US$ % % Dubai Overall US$ % % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes Dubai Beach, Dubai City and Dubai Apartment Hotels. The Middle East hotel benchmark Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent Benchmark 7

8 (local currency) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP , , % 142,189 14, % Qatar Doha QAR % % Saudi Arabia Jeddah SAR % % Madina SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,646 1, % 1,42 1, % Dubai City AED % % Dubai Overall AED ,112 1, % 961 1,44 7.9% Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall includes Dubai Beach, Dubai City and Dubai Apartment Hotels. Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent Benchmark April 215

9 (US dollars) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi US$ % % Dubai Beach US$ % % Dubai City US$ % % Dubai Overall US$ % % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall includes Dubai Beach, Dubai City and Dubai Apartment Hotels. Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent Benchmark 9

10 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. The MENA practice of EY has been operating in the region since For over 9 years, we have grown to over 5, people united across 2 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. 215 EYGM Limited. All Rights Reserved. ED none This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/mena