Benchmark Middle East hotel benchmark survey report July 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
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 July 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: July 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 July 215
July 215 Key Performance Highlights Hospitality markets in Beirut, Cairo and Amman witnessed a positive increase when compared to the same period last year In July 215, Beirut witnessed a jump in average occupancy of approximately 21.% when compared to the same period last year, coupled with an increase in ADR from US$186 in July 214 to US$199 in July 215, which resulted in a rise in RevPAR of 73.4% during the same period. The enduring increase in Beirut s hospitality market could be ascribed to the ongoing political stability in Lebanon along with the many tourists that tend to visit Beirut during its peak season. Despite the political instability in Cairo, Cairo s hospitality market continued to witness a triple digit increase in RevPAR of 149.2% during the month of July 215 when compared to the same period last year. This was mainly due to an increase in ADR from US$95 in July 214 to US$133 in July 215, overall occupancy has also increase by 17.% in July 215 when compared to the same period last year. Amman s hospitality market has witnessed an increase in RevPAR by 25.7% in July 215 when compared to the same period last year. Occupancy has increased from 36.% in July 214 to 47.% in July 215, however, ADR has dropped from US$16 in July 214 to US$154 in July 215. Abu Dhabi and Dubai s hospitality market witnessed an increase in occupancy in July 215 In July 215, Abu Dhabi s hospitality market witnessed an increase in RevPAR of 2.6% when compared to the same period last year, this was mainly due to the increase in occupancy from 54.% in July 214 to 61.% in July 215.Dubai s overall hospitality market has recorded a drop in ADR, from US$174 in July 214 to US$172 in July 215. However, average occupancy has witnessed an increase of 13.1% in July 215 when compared to the same period last year, which resulted in an increase in RevPAR from US$84 in July 214 to US$15 in July 215. The increase in occupancy in both Abu Dhabi and Dubai may be attributed to the Eid Holidays. Manama and Kuwait s hospitality market performance dropped when compared to June 214 Manama s hospitality market continues to drop month over month, with RevPAR dropping by 5.5%, this was mainly due to the drop in ADR by 1.7% from US$197 in July 214 to US$176 in July 215. In July 215, Kuwait s hospitality market witnessed a decrease in occupancy of 3.% when compared to the same period last year, which resulted in RevPAR dropping from US$54. in July 214 to US$52. in July 215, however, ADR did increase from US$22 in July 214 to US$221 in July 215, this may be attributed to the typical hot summer season. Benchmark 3
Markets with the largest variance on % Occupancy for Manama Hotels 6 57 Occupancy % July 214 July 215 55 57 Occupancy % 5 4 3 32 5 5 48 39 43 47 46 39 34 2 1 Average room rate for Doha (US$) Average room rate 3 25 2 15 1 198 215 222 272 247 248 Average room rate July 214 July 215 273 261 266 244 232 212 217 5 RevPAR in Jeddah (US$) 3 Room yield July 214 July 215 266 277 Room yield 25 2 15 1 199 21 233 216 179 163 169 196 21 188 198 5 4 Benchmark July 215
Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % July 214 July 215 Occupancy % 9 8 7 6 5 48 74 77 83 86 82 87 88 88 84 85 68 61 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 35 3 32 39 Average room rate July 214 July 215 297 321 296 33 289 Average room rate 25 2 15 174 195 21 227 174 172 1 5 RevPAR in Dubai Overall hotels (US$) 3 25 265 265 Room yield July 214 July 215 242 278 259 265 243 2 194 Room yield 15 1 84 144 155 119 15 5 Benchmark 5
Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: July 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama BHD 34. 32. 2. 66 74 1.7% 23 24 5.5% Egypt Cairo City EGP 39. 22. 17. 766 548 39.8% 33 122 149.2% Jordan Amman JOD 47. 36. 11. 19 113 3.8% 51 41 25.7% Kuwait Kuwait KWD 23. 26. 3. 64 59 9.5% 15 16 4.7% Lebanon Beirut LBP 56. 35. 21. 3,951 281,692 6.8% 171,291 98,765 73.4% Qatar Doha QAR 49. 52. 3. 79 72 9.8% 389 379 2.7% Saudi Arabia Jeddah SAR 84. 7. 14. 1,237 1,51 17.7% 1,39 746 39.3% Madina SAR 73. 73.. 1,139 978 16.5% 835 718 16.4% Makkah SAR 55. 56. 1. 2,462 1,51 64.1% 1,364 851 6.3% Riyadh SAR 37. 39. 2. 694 75 7.5% 264 293 1.% United Arab Emirates Abu Dhabi AED 61. 54. 7. 396 439 9.6% 244 238 2.6% Dubai Beach AED 63. 54. 9. 877 82 6.9% 561 444 26.3% Dubai City AED 58. 44. 14. 478 515 7.1% 282 227 24.% Dubai Overall AED 61. 47.9 13.1 63 64 1.5% 385 37 25.3% 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 July 215
Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: July 215 Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points 215 214 Change 215 214 Change Bahrain Manama US$ 34. 32. 2. 176 197 1.7% 61 65 5.5% Egypt Cairo City US$ 39. 22. 17. 133 95 39.8% 53 21 149.2% Jordan Amman US$ 47. 36. 11. 154 16 3.8% 72 58 25.7% Kuwait Kuwait US$ 23. 26. 3. 221 22 9.5% 52 54 4.7% Lebanon Beirut US$ 56. 35. 21. 199 186 6.8% 113 65 73.4% Qatar Doha US$ 49. 52. 3. 217 198 9.8% 17 14 2.7% Saudi Arabia Jeddah US$ 84. 7. 14. 33 28 17.7% 277 199 39.3% Madina US$ 73. 73.. 34 261 16.5% 223 191 16.4% Makkah US$ 55. 56. 1. 657 4 64.1% 364 227 6.3% Riyadh US$ 37. 39. 2. 185 2 7.5% 7 78 1.% United Arab Emirates Abu Dhabi US$ 61. 54. 7. 18 119 9.6% 66 65 2.6% Dubai Beach US$ 63. 54. 9. 239 223 6.9% 153 121 26.3% Dubai City US$ 58. 44. 14. 13 14 7.1% 77 62 24.% Dubai Overall US$ 61. 47.9 13.1 172 174 1.5% 15 84 25.3% 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, 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 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 46. 48. 2. 74 79 7.4% 34 38 12.1% Egypt Cairo City EGP 47. 31. 16. 62 469 32.3% 294 146 11.6% Jordan Amman JOD 53. 62. 9. 19 116 5.9% 59 72 18.9% Kuwait Kuwait KWD 51. 5. 1. 79 83 4.8% 41 42 3.9% Lebanon Beirut LBP 56. 47. 9. 271,32 257,376 5.4% 152,52 123,269 23.7% Qatar Doha QAR 71. 7. 1. 92 844 6.8% 641 593 8.1% Saudi Arabia Jeddah SAR 77. 76. 1. 1,46 992 5.4% 87 762 5.9% Madina SAR 77. 77.. 799 658 21.5% 62 511 21.4% Makkah SAR 53. 6. 7. 927 725 27.9% 492 442 11.4% Riyadh SAR 64. 63. 1. 82 867 7.5% 516 554 6.9% United Arab Emirates Abu Dhabi AED 76. 78. 2. 69 687.5% 531 536.9% Dubai Beach AED 8. 77. 3. 1,396 1,468 4.9% 1,119 1,136 1.5% Dubai City AED 79. 8. 1. 699 772 9.5% 558 622 1.3% Dubai Overall AED 79. 79.. 958 1,25 6.6% 765 813 5.8% 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 July 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$ 46. 48. 2. 195 211 7.4% 9 12 12.1% Egypt Cairo City US$ 47. 31. 16. 18 81 32.3% 51 25 11.6% Jordan Amman US$ 53. 62. 9. 155 165 5.9% 83 13 18.9% Kuwait Kuwait US$ 51. 5. 1. 27 284 4.8% 139 145 3.9% Lebanon Beirut US$ 56. 47. 9. 179 17 5.4% 11 81 23.7% Qatar Doha US$ 71. 7. 1. 248 232 6.8% 176 163 8.1% Saudi Arabia Jeddah US$ 77. 76. 1. 279 265 5.4% 215 23 5.9% Madina US$ 77. 77.. 213 176 21.5% 165 136 21.4% Makkah US$ 53. 6. 7. 247 193 27.9% 131 118 11.4% Riyadh US$ 64. 63. 1. 214 231 7.5% 138 148 6.9% United Arab Emirates Abu Dhabi US$ 76. 78. 2. 188 187.5% 145 146.9% Dubai Beach US$ 8. 77. 3. 38 4 4.9% 35 39 1.5% Dubai City US$ 79. 8. 1. 19 21 9.5% 152 169 1.3% Dubai Overall US$ 79. 79.. 261 279 6.6% 28 221 5.8% 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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