Benchmark Middle East hotel benchmark survey report December 214 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 five-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 December 214 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. EY s 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 the 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 financial 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 organization in the Middle East, with 2 offices in 15 countries, and part of the global EY network with more than 19, people in 15 countries. Page 3: December 214 key performance highlights Page 4: We have highlighted the largest variance on a per-month basis for the various markets over the last 12-month period in regards to occupancy, average room rate and room yield Page 5: Dubai overall occupancy, average room rate and room 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 dollar currency Page 8: Year-to-date performance of various markets compared to previous year period in local currency Page 9: Year-to-date performance of various markets compared to previous year period in US dollar currency 2 Benchmark December 214
December 214 key performance highlights Hospitality markets in Cairo, Beirut and Doha witnessed a positive increase in December 214 With the start of the Holiday season, Beirut s hotel market continued to report a positive increase in overall performance in December 214, with a rise in occupancy levels increasing by 8.% from 53.% in December 213 to 61.% in December 214. ADR increased from US$183 in December 213 to US$189 in December 214. The growth in both demand and ADR boosted RevPAR by 19.3% The comparative stability in Cairo during the past few months has helped hoteliers record strong growth in revenues month over month. Occupancy grew by 16.% from 3.% in December 213 to 46.% in December 214. The increase in occupancy was coupled with a jump in ADR from US$7 in December 213 to US$16 in December 214. Cairo s RevPAR continues to witness a triple digit increase by 127.4% in December 214 when compared to the same period last year Hotel occupancy in Doha continues to rise month over month, while ADR increased from US$242 in December 213 to US$248 in December 214. The increase in occupancy was attributed to the Cyber Security Conference and Exhibition which took place in December 214 Dubai s hospitality market sees a slight drop in occupancy when compared to December 213 Despite the increase in tourists visiting Dubai when compared to the same time last year and the Dubai International Jewelry Event known to be the largest and most influential jewelry event in the Middle East, occupancy slightly dropped by.4% in December 214 when compared to December 213 due to the increased inventory in the city Abu Dhabi s hospitality market witnesses a positive increase in all Key Performance Indicators in December 214 In December 214, Abu Dhabi s occupancy increased from 79.% in December 213 to 85.% in December 213. The increase in occupancy was coupled with a jump in ADR from US$21 in December 213 to US$243 in December 214, resulting a rise in RevPAR by 31.1% in December 214 when compared to the same period last year. The increase in occupancy was attributed to the Prestigious 9th Annual Abu Dhabi Conference focusing on energy, industry and infrastructure which took place in December 214 Jeddah and Amman s hospitality market performance witnessed a decline when compared to the same period last year As ADR grew in Jeddah by 3.% to US$244 in December 214, occupancy dropped by 5.% from 71.% in December 213 to 66.% in December 214. The fall in demand resulted in RevPAR decreasing by 4.% in December 214 In December 214, Amman s hospitality market witnessed a decrease in RevPAR of 13.3% as compared to December 213, this was mainly due to ADR dropping from US$151 in December 213 to US$146 in December 214, coupled by a slump in average occupancy of 6.% in December 214 compared to the same time last year. The civil unrest of neighboring countries continues to shake hotel performance in Amman Benchmark December 214 3
Markets with the largest variance on a per-month basis % Occupancy for Jeddah Hotels 9 8 7 71 74 78 Occupancy % December 213 December 214 8 79 78 78 71 75 81 74 72 66 Occupancy % 6 5 4 3 2 1 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average Room Rate for Abu Dhabi (US$) 3 Average room rate December 213 December 214 273 Average room rate 25 2 15 1 21 218 217 213 222 181 146 137 138 157 218 243 5 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rev PAR in Madina (US$) 25 Room yield December 213 December 214 2 191 187 164 158 167 Room yield 15 1 119 133 12 12 112 11 87 16 5 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4 Benchmark December 214
Dubai overall monthly performance % occupancy for Dubai Overall hotels 1 Occupancy % December 213 December 214 Occupancy % 9 8 7 6 5 82 87 89 9 84 79 76 46 74 77 83 86 82 4 3 2 1 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average room rate for Dubai Overall hotels (US$) 4 Average room rate December 213 December 214 35 3 35 337 313 319 327 32 39 297 Average room rate 25 2 15 244 186 174 195 21 1 5 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Rev PAR in Dubai Overall hotels (US$) 35 Room yield December 213 December 214 3 25 251 294 278 286 276 265 265 242 Room yield 2 15 194 141 144 155 1 81 5 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Benchmark December 214 5
Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: 12/214 Currency: local Currency 214% 213% Occupancy Average room rate Room yield Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 39. 37. 2. 73 78-6.9% 29 3-3.4% Egypt Cairo - City EGP 46. 3. 16. 613 45 51.3% 285 125 127.4% Jordan Amman JOD 52. 58. -6. 13 17-3.8% 54 62-13.3% Kuwait Kuwait KWD 45. 49. -4. 72 9-19.6% 33 44-25.9% Lebanon Beirut LBP 61. 53. 8. 286,127 276,568 3.5% 176,25 147,654 19.3% Qatar Doha QAR 63. 6. 3. 91 879 2.5% 571 528 8.1% Saudi Arabia Jeddah SAR 66. 71. -5. 916 889 3.% 611 636-4.% Madina SAR 59. 64. -5. 664 694-4.3% 397 446-1.9% Riyadh SAR 63. 65. -2. 783 793-1.3% 5 522-4.4% United Arab Emirates Abu Dhabi AED 85. 79. 6. 894 739 2.9% 768 586 31.1% Dubai Beach AED 79. 73. 6. 1,667 1,72-3.1% 1,33 1,256 5.9% Dubai City AED 82. 86. -4. 81 815 -.6% 671 78-5.2% Dubai Overall AED 81.5 82. -.4 1,91 1,14-1.2% 889 95-1.7% Notes Figures may not add up due to rounding. 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 office 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 does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary to 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 office of EY at + 971 4 332 4. 6 Benchmark December 214
Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: 12/214 Currency: US$ Currency 214% 213% Occupancy Average room rate Room yield Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 39. 37. 2. 193 28-6.9% 76 78-3.4% Egypt Cairo - City US$ 46. 3. 16. 16 7 51.3% 49 22 127.4% Jordan Amman US$ 52. 58. -6. 146 151-3.8% 76 88-13.3% Kuwait Kuwait US$ 45. 49. -4. 247 37-19.6% 113 152-25.9% Lebanon Beirut US$ 61. 53. 8. 189 183 3.5% 116 97 19.3% Qatar Doha US$ 63. 6. 3. 248 242 2.5% 157 145 8.1% Saudi Arabia Jeddah US$ 66. 71. -5. 244 237 3.% 163 17-4.% Madina US$ 59. 64. -5. 177 185-4.3% 16 119-1.9% Riyadh US$ 63. 65. -2. 29 212-1.3% 133 139-4.4% United Arab Emirates Abu Dhabi US$ 85. 79. 6. 243 21 2.9% 29 16 31.1% Dubai Beach US$ 79. 73. 6. 454 468-3.1% 362 342 5.9% Dubai City US$ 82. 86. -4. 221 222 -.6% 183 193-5.2% Dubai Overall US$ 81.5 82. -.4 297 31-1.2% 242 246-1.7% Notes Figures may not add up due to rounding. 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 office 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 does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary to 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 office of EY at + 971 4 332 4. Benchmark December 214 7
Selected markets year-to-date performance (local currency) EY Middle East hotel benchmark survey Year-over-year performance (January December) Currency: local Currency 214% 213% Occupancy Average room rate Room yield Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 48. 42. 6. 76 77-1.6% 37 33 12.1% Egypt Cairo City EGP 35. 26. 9. 536 466 15.% 188 123 53.1% Jordan Amman JOD 6. 61. -1. 113 11 3.1% 68 68.4% Kuwait Kuwait KWD 48. 58. -1. 86 82 4.6% 42 48-12.9% Lebanon Beirut LBP 52. 52.. 249,522 256,544-2.7% 129,922 133,732-2.8% Qatar Doha QAR 7. 63. 7. 855 847 1.% 66 534 13.6% Saudi Arabia Jeddah SAR 75. 77. -2. 1,18 932 9.2% 773 724 6.8% Madina SAR 74. 64. 1. 714 761-6.2% 529 493 7.3% Riyadh SAR 66. 58. 8. 83 821-2.3% 534 48 11.2% United Arab Emirates Abu Dhabi AED 78.4 77.9.5 738 755-2.2% 583 584 -.1% Dubai Beach AED 78.1 77. 1.1 1,466 1,475 -.6% 1,159 1,135 2.1% Dubai City AED 8.5 84.7-4.2 755 753.3% 62 622-3.3% Dubai Overall AED 79.7 82. -2.3 1,9 1,8.1% 799 81-1.3% Notes Figures may not add up due to rounding. 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 office 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 does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary to 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 office of EY at + 971 4 332 4. 8 Benchmark December 214
Selected markets year-to-date performance (US dollars) EY Middle East hotel benchmark survey Year-over-year performance (January December) Currency: US$ Currency 214% 213% Occupancy Average room rate Room yield Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 48. 42. 6. 22 25-1.6% 97 87 12.1% Egypt Cairo - City US$ 35. 26. 9. 93 81 15.% 33 21 53.1% Jordan Amman US$ 6. 61. -1. 16 156 3.1% 97 96.4% Kuwait Kuwait US$ 48. 58. -1. 294 281 4.6% 143 164-12.9% Lebanon Beirut US$ 52. 52.. 165 169-2.7% 86 88-2.8% Qatar Doha US$ 7. 63. 7. 235 233 1.% 167 147 13.6% Saudi Arabia Jeddah US$ 75. 77. -2. 272 249 9.2% 26 193 6.8% Madina US$ 74. 64. 1. 19 23-6.2% 141 132 7.3% Riyadh US$ 66. 58. 8. 214 219-2.3% 142 128 11.2% United Arab Emirates Abu Dhabi US$ 78.4 77.9.5 21 25-2.2% 159 159 -.1% Dubai Beach US$ 78.1 77. 1.1 399 42 -.6% 316 39 2.1% Dubai City US$ 8.5 84.7-4.2 26 25.3% 164 169-3.3% Dubai Overall US$ 79.7 82. -2.3 275 274.1% 218 221-1.3% Notes Figures may not add up due to rounding. 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 office 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 does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary to 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 office of EY at + 971 4 332 4. Benchmark December 214 9
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