Benchmark Middle East hotel benchmark survey report March 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 the ve star and four star segments.
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 March 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 analysis, due diligence, market and nancial feasibility 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 organi ation in the Middle East with 2 of ces in 15 countries and is part of the global EY organization with more than 19, people in 15 countries. Page 3: March 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 March 215
March 215 Key Performance Highlights Hospitality markets in Beirut, Doha and Kuwait witness a positive increase in March 215 In March 215, Beirut s hospitality market witnessed an increase in occupancy of 14.% as compared to March 214. ADR increased from US$142 in March 214 to US$167 in March 215, which resulted in a rise in RevPAR by 6.6% from US$57 in March 214 to US$91 in March 215. The increase in occupancy was attributed to the continuous stabilized political situation along with the ArabNet Beirut 215 Conference, the largest event for digital creative sectors Doha s hospitality market witnessed an increase in occupancy from 66.% in March 214 to 77.% in March 215. The increase in occupancy was coupled with a jump in ADR from US$237 in March 214 to US$266 in March 215, resulting in a rise in RevPAR by 29.6% in March 215 when compared to the same period last year, this is ascribed to the Multaqa Conference, the MENA regions leading risk and insurance forum Kuwait s hospitality market has witnessed an increase in RevPAR of 9.3% in March 215 when compared to the same period last year. This was mainly due to the increase in average occupancy from 66.% in March 214 to 75.% in March 215 Dubai and Abu Dhabi s hospitality market witness a drop in RevPAR when compared to March 214 In March 215, Dubai s hospitality market witnessed a drop in RevPAR by 6.9% when compared to the same period last year Dubai s overall average occupancy drops by 1.5% when compared to March 214, due to the additional supply of new branded hotel rooms that have been added to Dubai s hotel supply over the past year Abu Dhabi s occupancy performance decreased from 85.% in March 214 to 82.% in March 215. The decrease in occupancy was coupled with a drop in ADR from US$214 in March 214 to US$24 in March 215, resulting RevPAR to drop by 8.7% in March 215 when compared to the same period last year Amman and Riyadh s hospitality market performance dropped when compared to the same period last year Amman s hospitality market continues to fall in March 215, average occupancy declined by 8.% when compared to March 214. ADR dropped from US$16 in March 214 to US$154 in March 215, resulting in a double digit decrease in RevPAR by 16.4% when compared to same period last year, this is due to the ongoing political instability in neighboring countries Riyadh s hospitality market witnessed a slight decrease in RevPAR of 2.6% in March 215 as compared to March 214, this was mainly due to ADR dropping from US$22 in March 214 to US$218 in March 215, coupled by a slump in average occupancy of 1.% in March 215 when compared to the same period last year Benchmark 3
Markets with the largest variance on a per month basis % Occupancy for Cairo Hotels 6 Occupancy % Occupancy % 5 4 3 32 35 33 35 22 52 42 5 4 46 49 45 45 2 1 Average Room Rate for Jeddah (US$) 35 Average room rate Average room rate 3 25 2 15 248 262 278 299 279 267 285 291 248 244 248 257 264 1 5 RevPAR in Beirut (US$) 14 Room yield 12 12 116 Room yield 1 8 6 57 82 97 62 14 89 1 83 92 93 91 4 2 4 Benchmark March 215
Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % Occupancy % 9 8 7 6 5 89 84 79 76 46 74 77 83 86 82 87 88 88 4 3 2 1 Average room rate for Dubai Overall hotels (US$) Average room rate 35 3 32 327 32 39 297 321 296 33 Average room rate 25 2 15 244 186 174 195 21 1 5 Rev PAR in Dubai Overall hotels (US$) 3 25 285 276 Room yield 265 265 242 278 259 265 2 194 Room yield 15 141 144 155 1 81 5 Benchmark 5
Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: March 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 55. 54. 1. 7 63 11.5% 39 35 12.3% Egypt Cairo City EGP 45. 32. 13. 65 481 25.6% 272 156 74.7% Jordan Amman JOD 58. 66. 8. 18 113 3.7% 63 75 16.4% Kuwait Kuwait KWD 75. 66. 9. 88 91 3.4% 67 61 9.3% Lebanon Beirut LBP 54. 4. 14. 2,52,699 2,14,734 17.7% 1,38,436 86,221 6.6% Qatar Doha QAR 77. 66. 11. 968 863 12.1% 745 575 29.6% Saudi Arabia Jeddah SAR 79. 8. 1. 99 93 6.4% 789 749 5.4% Madina SAR 89. 81. 8. 751 612 22.7% 67 499 34.2% Riyadh SAR 77. 78. 1. 818 826 1.% 632 648 2.6% United Arab Emirates Abu Dhabi AED 82. 85. 3. 748 787 4.9% 615 674 8.7% Dubai Beach AED 89. 87. 2. 1,68 1,741 3.5% 1,52 1,52 1.2% Dubai City AED 87. 9. 3. 788 867 9.% 686 786 12.7% Dubai Overall AED 87.6 89.1 1.5 1,113 1,175 5.3% 975 1,47 6.9% 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. The Middle East hotel benchmark survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate 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 of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at + 971 4 332 4. 6 Benchmark March 215
Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: March 215 Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama US$ 55. 54. 1. 187 167 11.5% 13 92 12.3% Egypt Cairo City US$ 45. 32. 13. 15 83 25.6% 47 27 74.7% Jordan Amman US$ 58. 66. 8. 154 16 3.7% 89 17 16.4% Kuwait Kuwait US$ 75. 66. 9. 32 313 3.4% 228 29 9.3% Lebanon Beirut US$ 54. 4. 14. 167 142 17.7% 91 57 6.6% Qatar Doha US$ 77. 66. 11. 266 237 12.1% 25 158 29.6% Saudi Arabia Jeddah US$ 79. 8. 1. 264 248 6.4% 21 2 5.4% Madina US$ 89. 81. 8. 2 163 22.7% 179 133 34.2% Riyadh US$ 77. 78. 1. 218 22 1.% 168 173 2.6% United Arab Emirates Abu Dhabi US$ 82. 85. 3. 24 214 4.9% 168 183 8.7% Dubai Beach US$ 89. 87. 2. 457 474 3.5% 49 414 1.2% Dubai City US$ 87. 9. 3. 215 236 9.% 187 214 12.7% Dubai Overall US$ 87.6 89.1 1.5 33 32 5.3% 265 285 6.9% 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. The Middle East hotel benchmark survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate 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 of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at + 971 4 332 4. Benchmark 7
Selected markets year to date performance (local currency) EY Middle East hotel benchmark survey Year to Date Performance (January 215 March 215) Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 48. 52. 4. 72 73 1.5% 35 38 8.1% Egypt Cairo City EGP 46. 3. 16. 593 438 35.4% 277 134 16.6% Jordan Amman JOD 5. 61. 11. 19 111 2.% 55 68 18.7% Kuwait Kuwait KWD 58. 56. 2. 78 9 13.8% 46 51 1.3% Lebanon Beirut LBP 53. 39. 14. 2,6,892 2,41,661 8.% 1,39,787 95,417 46.5% Qatar Doha QAR 76. 69. 7. 97 869 11.5% 742 67 22.2% Saudi Arabia Jeddah SAR 74. 76. 2. 963 913 5.4% 719 72 2.4% Madina SAR 81. 82. 1. 715 647 1.5% 58 533 8.9% Riyadh SAR 71. 7. 1. 814 832 2.2% 58 591 1.8% United Arab Emirates Abu Dhabi AED 81. 81.. 823 85 2.1% 667 66 1.1% Dubai Beach AED 87. 83. 4. 1,623 1,698 4.4% 1,414 1,415.1% Dubai City AED 87. 91. 4. 851 923 7.8% 745 843 11.7% Dubai Overall AED 87. 88. 1. 1,128 1,19 5.2% 984 1,51 6.4% 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 survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate 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 of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at + 971 4 332 4. 8 Benchmark March 215
Selected markets year to date performance (US dollars) EY Middle East hotel benchmark survey Year to Date Performance (January 215 March 215) Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama US$ 48. 52. 4. 19 193 1.5% 93 11 8.1% Egypt Cairo City US$ 46. 3. 16. 13 76 35.4% 48 23 16.6% Jordan Amman US$ 5. 61. 11. 155 158 2.% 79 97 18.7% Kuwait Kuwait US$ 58. 56. 2. 267 31 13.8% 156 174 1.3% Lebanon Beirut US$ 53. 39. 14. 172 159 8.% 92 63 46.5% Qatar Doha US$ 76. 69. 7. 267 239 11.5% 24 167 22.2% Saudi Arabia Jeddah US$ 74. 76. 2. 257 244 5.4% 192 187 2.4% Madina US$ 81. 82. 1. 191 173 1.5% 155 142 8.9% Riyadh US$ 71. 7. 1. 217 222 2.2% 155 158 1.8% United Arab Emirates Abu Dhabi US$ 81. 81.. 224 219 2.1% 182 18 1.1% Dubai Beach US$ 87. 83. 4. 442 462 4.4% 385 385.1% Dubai City US$ 87. 91. 4. 232 251 7.8% 23 23 11.7% Dubai Overall US$ 87. 88. 1. 37 324 5.2% 268 286 6.4% 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 survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate 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 of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at + 971 4 332 4. Benchmark 9
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