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
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
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$236 in April 215, which resulted in an increase in RevPAR of 9.1% in April 215 when compared to the same period last year. The increase in occupancy was attributed to Cityscape Abu Dhabi. Benchmark 3
Markets with the largest variance on % Occupancy for Amman Hotels 8 Occupancy % April 214 April 215 Occupancy % 7 6 5 4 3 71 7 7 33 64 6 57 58 52 43 5 58 62 2 1 Average Room Rate for Cairo (US$) 12 1 89 94 19 Average room rate April 214 April 215 98 112 95 16 16 96 15 1 Average room rate 8 6 4 79 8 2 RevPAR in Abu Dhabi (US$) 25 Room yield April 214 April 215 237 2 187 183 29 167 214 168 24 15 149 Room yield 1 111 71 97 124 5 4 Benchmark April 215
Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % April 214 April 215 Occupancy % 9 8 7 6 5 85 79 76 46 74 77 83 86 82 87 88 88 84 4 3 2 1 Average room rate for Dubai Overall hotels (US$) Average room rate April 214 April 215 35 3 326 32 39 297 321 296 33 289 Average room rate 25 2 15 244 186 174 195 21 1 5 Rev PAR in Dubai Overall hotels (US$) 3 25 278 Room yield April 214 April 215 265 265 242 278 259 265 243 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: April 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 57. 51. 6. 75 82 8.5% 43 42 2.3% Egypt Cairo City EGP 49. 35. 14. 579 454 27.6% 287 16 78.7% Jordan Amman JOD 62. 71. 9. 17 112 4.2% 67 8 16.8% Kuwait Kuwait KWD 59. 57. 2. 8 8.7% 48 46 5.3% Lebanon Beirut LBP 56. 51. 5. 264,742 258,272 2.5% 149,395 133,65 12.3% Qatar Doha QAR 76. 76.. 886 842 5.2% 676 642 5.3% Saudi Arabia Jeddah SAR 73. 78. 5. 963 983 2.% 76 776 9.% Madina SAR 85. 78. 7. 721 575 25.4% 618 451 36.9% Riyadh SAR 71. 77. 6. 822 841 2.3% 587 649 9.5% United Arab Emirates Abu Dhabi AED 86. 84. 2. 868 89 7.4% 748 685 9.1% Dubai Beach AED 83. 81. 2. 1,719 1,977 13.1% 1,437 1,621 11.3% Dubai City AED 85. 87. 2. 693 787 12.% 589 691 14.7% Dubai Overall AED 84.2 85.4 1.1 1,61 1,196 11.3% 893 1,21 12.5% 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 + 971 4 332 4. 6 Benchmark April 215
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 215 214 Change 215 214 Change Bahrain Manama US$ 57. 51. 6. 2 219 8.5% 115 112 2.3% Egypt Cairo City US$ 49. 35. 14. 1 79 27.6% 5 28 78.7% Jordan Amman US$ 62. 71. 9. 152 158 4.2% 95 114 16.8% Kuwait Kuwait US$ 59. 57. 2. 275 273.7% 165 157 5.3% Lebanon Beirut US$ 56. 51. 5. 175 17 2.5% 99 88 12.3% Qatar Doha US$ 76. 76.. 244 231 5.2% 186 177 5.3% Saudi Arabia Jeddah US$ 73. 78. 5. 257 262 2.% 188 27 9.% Madina US$ 85. 78. 7. 192 153 25.4% 165 12 36.9% Riyadh US$ 71. 77. 6. 219 224 2.3% 157 173 9.5% United Arab Emirates Abu Dhabi US$ 86. 84. 2. 236 22 7.4% 24 187 9.1% Dubai Beach US$ 83. 81. 2. 468 539 13.1% 391 441 11.3% Dubai City US$ 85. 87. 2. 189 214 12.% 16 188 14.7% Dubai Overall US$ 84.2 85.4 1.1 289 326 11.3% 243 278 12.5% 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 + 971 4 332 4. Benchmark 7
(local currency) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 51. 52. 1. 73 75 3.3% 37 39 5.3% Egypt Cairo City EGP 47. 31. 16. 589 442 33.2% 28 141 98.6% Jordan Amman JOD 53. 63. 1. 19 111 2.6% 58 71 18.2% Kuwait Kuwait KWD 58. 56. 2. 79 88 1.5% 46 5 6.7% Lebanon Beirut LBP 54. 42. 12. 261,892 246,696 6.2% 142,189 14,829 35.6% Qatar Doha QAR 76. 71. 5. 952 863 1.3% 728 614 18.5% Saudi Arabia Jeddah SAR 74. 77. 3. 963 931 3.4% 716 72.7% Madina SAR 82. 81. 1. 717 63 13.8% 589 512 15.% Riyadh SAR 71. 72. 1. 816 835 2.3% 582 65 3.9% United Arab Emirates Abu Dhabi AED 82. 82.. 834 86 3.5% 687 666 3.1% Dubai Beach AED 86. 83. 3. 1,646 1,766 6.8% 1,42 1,466 3.2% Dubai City AED 86. 9. 4. 813 89 8.7% 76 85 12.3% Dubai Overall AED 86. 87. 1. 1,112 1,192 6.7% 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 + 971 4 332 4. 8 Benchmark April 215
(US dollars) EY Middle East hotel benchmark survey Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama US$ 51. 52. 1. 193 199 3.3% 98 14 5.3% Egypt Cairo City US$ 47. 31. 16. 12 77 33.2% 48 24 98.6% Jordan Amman US$ 53. 63. 1. 154 158 2.6% 83 11 18.2% Kuwait Kuwait US$ 58. 56. 2. 269 31 1.5% 158 17 6.7% Lebanon Beirut US$ 54. 42. 12. 173 163 6.2% 94 69 35.6% Qatar Doha US$ 76. 71. 5. 262 237 1.3% 2 169 18.5% Saudi Arabia Jeddah US$ 74. 77. 3. 257 248 3.4% 191 192.7% Madina US$ 82. 81. 1. 191 168 13.8% 157 137 15.% Riyadh US$ 71. 72. 1. 218 223 2.3% 155 161 3.9% United Arab Emirates Abu Dhabi US$ 82. 82.. 227 22 3.5% 187 181 3.1% Dubai Beach US$ 86. 83. 3. 448 481 6.8% 387 399 3.2% Dubai City US$ 86. 9. 4. 221 242 8.7% 192 219 12.3% Dubai Overall US$ 86. 87. 1. 33 325 6.7% 262 284 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, 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 + 971 4 332 4. Benchmark 9
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