Benchmark. Middle East hotel benchmark survey report

Transcription

1 Benchmark Middle East hotel benchmark survey report uary 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 uary 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: uary 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 uary 215

3 uary 215 key performance highlights Hospitality markets in Beirut, Riyadh and Doha witness a positive increase in uary 215 Beirut s hospitality market performance has witnessed an increase in RevPAR of 43.5% when compared to the same period last year. This was mainly due to an increase in average occupancy from 36.% in uary 214 to 5.% in uary 215, this is ascribed to the overall political situation in Lebanon stabilizing and the New Year Holiday In uary 215, Riyadh s average occupancy levels increased by 3.% when compared to the same period last year, however, ADR witnessed a drop of 4.6% Doha s hospitality market witnessed an increase in occupancy from 7.% in uary 214 to 75.% in uary 215. The increase in occupancy was coupled with a jump in ADR from US$244 in uary 214 to US$273 in uary 215, resulting in a rise in RevPAR by 2.4% in uary 215 when compared to the same period last year. The increase in occupancy was attributed to the 24th Men s Handball World Championship tournament that began on the 15th of uary 215 Amman and Madina s hospitality market performance dropped when compared to the same period last year Madina s hospitality market has witnessed a decrease in RevPAR of 12.% in uary 215 when compared to the same period last year, which was mainly due to a decrease in occupancy of 11.%, this was offset by a slight increase in ADR from US$185 in uary 214 to US$188 in uary 215 Dubai and Abu Dhabi s hospitality market witnesses a drop in RevPAR performance when compared to uary 214 Strong supply growth of hotels in Dubai continues to surpass growth in demand. Hotels across Dubai witness a decrease in RevPAR by 5.7% in uary 214 when compared to uary 215. The drop in room revenue was due to the slender fall in occupancy from 87.2% in uary 214 to 86.5% in uary 215 and largely led to ADR dropping from US$338 in uary 214 to US$321 in uary 215. The political situation and the weakening of the Russian ruble has led to a decrease of inbound travelers from Russia and some demand on the city Abu Dhabi s hospitality performance decreases by 4.% in RevPAR from US$223 in uary 214 to US$214 in uary 215, mainly due to a drop in ADR of 3.9% in uary 215, while maintaining the same occupancy levels as last year Amman s hospitality market continues to drop month over month, with RevPAR dropping from US$84 in uary 214 to US$68 in uary 215, which was due to the decrease in occupancy of 1.% when compared to the same period last year, this is attributed to the political situation in neighboring countries Benchmark 3

4 Markets with the largest variance on % Occupancy for Amman Hotels 9 Occupancy % uary 214 uary Occupancy % Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Average Room Rate for Cairo City (US$) Average room rate Average room rate uary 214 uary Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Rev PAR in Doha (US$) 25 Room yield uary 214 uary Room yield Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4 Benchmark uary 215

5 Dubai overall monthly performance % occupancy for Dubai Overall hotels 1 Occupancy % uary 214 uary 215 Occupancy % Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Average room rate for Dubai Overall hotels (US$) 4 Average room rate uary 214 uary Average room rate Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months RevPAR in Dubai Overall hotels (US$) 35 Room yield uary 214 uary Room yield Nov Dec Feb Mar Apr May Jun Jul Aug Sep Oct Nov Months Benchmark 5

6 Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: uary 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 ,11 263, % 139,517 97, % Qatar Doha QAR % % Saudi Arabia Jeddah SAR % % Madina SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,64 1, % 1,366 1,45-2.8% Dubai City AED % % Dubai Overall AED ,18 1, % 1,21 1,82-5.7% 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 uary 215

7 Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: uary 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 ,11 263, % 139,517 97, % Qatar Doha QAR % % Saudi Arabia Jeddah SAR % % Madina SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,64 1, % 1,366 1,45-2.8% Dubai City AED % % Dubai Overall AED ,18 1, % 1,21 1,82-5.7% 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 uary 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