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
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
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$68 in uary 215, which was due to the decrease in occupancy of 1.% when compared to the same period last year, this is attributed to the political situation in neighboring countries Benchmark 3
Markets with the largest variance on % Occupancy for Amman Hotels 9 Occupancy % uary 214 uary 215 8 Occupancy % 7 6 5 4 53 62 66 71 7 7 64 6 57 58 52 43 3 33 2 1 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Average Room Rate for Cairo City (US$) Average room rate 12 1 8 6 4 73 77 83 78 8 Average room rate uary 214 uary 215 89 94 19 98 112 95 16 16 2 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Rev PAR in Doha (US$) 25 Room yield uary 214 uary 215 2 171 172 158 177 188 174 167 212 24 25 Room yield 15 1 14 133 157 5 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4 Benchmark uary 215
Dubai overall monthly performance % occupancy for Dubai Overall hotels 1 Occupancy % uary 214 uary 215 Occupancy % 9 8 7 6 5 87 89 9 84 79 76 46 74 77 83 86 82 87 4 3 2 1 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Average room rate for Dubai Overall hotels (US$) 4 Average room rate uary 214 uary 215 35 3 338 313 319 327 32 39 297 321 Average room rate 25 2 15 244 186 174 195 21 1 5 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months RevPAR in Dubai Overall hotels (US$) 35 Room yield uary 214 uary 215 3 25 295 278 286 276 265 265 242 278 Room yield 2 15 194 141 144 155 1 81 5 Nov Dec Feb Mar Apr May Jun Jul Aug Sep Oct Nov Months Benchmark 5
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 215 214 Change 215 214 Change Bahrain Manama BHD 43. 42. 1. 72 86-15.8% 31 36-14.1% Egypt Cairo City EGP 49. 25. 24. 614 421 45.9% 33 19 177.3% Jordan Amman JOD 43. 53. -1. 19 19.1% 48 59-19.1% Kuwait Kuwait KWD 49. 53. -4. 72 11-29.2% 35 55-35.1% Lebanon Beirut LBP 5. 36. 14. 274,11 263,972 3.8% 139,517 97,224 43.5% Qatar Doha QAR 75. 7. 5. 991 886 11.8% 747 621 2.4% Saudi Arabia Jeddah SAR 68. 72. -4. 931 898 3.7% 634 654-3.1% Madina SAR 69. 8. -11. 74 695 1.3% 49 557-12.% Riyadh SAR 62. 59. 3. 82 841-4.6% 53 52.2% United Arab Emirates Abu Dhabi AED 78. 78.. 786 818-3.9% 613 639-4.% Dubai Beach AED 83. 79. 4. 1,64 1,772-7.5% 1,366 1,45-2.8% Dubai City AED 88. 91. -3. 933 97-3.9% 824 89-7.4% Dubai Overall AED 86.5 87.2 -.7 1,18 1,241-4.9% 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 + 971 4 332 4. 6 Benchmark uary 215
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 215 214 Change 215 214 Change Bahrain Manama US$ 43. 42. 1. 192 228-15.8% 83 97-14.1% Egypt Cairo City US$ 49. 25. 24. 16 73 45.9% 53 19 177.3% Jordan Amman US$ 43. 53. -1. 155 155.1% 68 84-19.1% Kuwait Kuwait US$ 49. 53. -4. 246 347-29.2% 121 187-35.1% Lebanon Beirut US$ 5. 36. 14. 181 174 3.8% 92 64 43.5% Qatar Doha US$ 75. 7. 5. 273 244 11.8% 25 171 2.4% Saudi Arabia Jeddah US$ 68. 72. -4. 248 24 3.7% 169 174-3.1% Madina US$ 69. 8. -11. 188 185 1.3% 131 148-12.% Riyadh US$ 62. 59. 3. 214 224-4.6% 134 134.2% United Arab Emirates Abu Dhabi US$ 78. 78.. 214 223-3.9% 167 174-4.% Dubai Beach US$ 83. 79. 4. 447 483-7.5% 372 383-2.8% Dubai City US$ 88. 91. -3. 254 264-3.9% 224 242-7.4% Dubai Overall US$ 86.5 87.2 -.7 321 338-4.9% 278 295-5.7% 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. 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 43. 42. 1. 72 86-15.8% 31 36-14.1% Egypt Cairo City EGP 49. 25. 24. 614 421 45.9% 33 19 177.3% Jordan Amman JOD 43. 53. -1. 19 19.1% 48 59-19.1% Kuwait Kuwait KWD 49. 53. -4. 72 11-29.2% 35 55-35.1% Lebanon Beirut LBP 5. 36. 14. 274,11 263,972 3.8% 139,517 97,224 43.5% Qatar Doha QAR 75. 7. 5. 991 886 11.8% 747 621 2.4% Saudi Arabia Jeddah SAR 68. 72. -4. 931 898 3.7% 634 654-3.1% Madina SAR 69. 8. -11. 74 695 1.3% 49 557-12.% Riyadh SAR 62. 59. 3. 82 841-4.6% 53 52.2% United Arab Emirates Abu Dhabi AED 78. 78.. 786 818-3.9% 613 639-4.% Dubai Beach AED 83. 79. 4. 1,64 1,772-7.5% 1,366 1,45-2.8% Dubai City AED 88. 91. -3. 933 97-3.9% 824 89-7.4% Dubai Overall AED 86. 87. -1. 1,18 1,241-4.9% 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 + 971 4 332 4. 8 Benchmark uary 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$ 43. 42. 1. 192 228-15.8% 83 97-14.1% Egypt Cairo City US$ 49. 25. 24. 16 73 45.9% 53 19 177.3% Jordan Amman US$ 43. 53. -1. 155 155.1% 68 84-19.1% Kuwait Kuwait US$ 49. 53. -4. 246 347-29.2% 121 187-35.1% Lebanon Beirut US$ 5. 36. 14. 181 174 3.8% 92 64 43.5% Qatar Doha US$ 75. 7. 5. 273 244 11.8% 25 171 2.4% Saudi Arabia Jeddah US$ 68. 72. -4. 248 24 3.7% 169 174-3.1% Madina US$ 69. 8. -11. 188 185 1.3% 131 148-12.% Riyadh US$ 62. 59. 3. 214 224-4.6% 134 134.2% United Arab Emirates Abu Dhabi US$ 78. 78.. 214 223-3.9% 167 174-4.% Dubai Beach US$ 83. 79. 4. 447 483-7.5% 372 383-2.8% Dubai City US$ 88. 91. -3. 254 264-3.9% 224 242-7.4% Dubai Overall US$ 86. 87. -1. 321 338-4.9% 278 295-5.7% 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, 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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