Benchmark Middle East Hotel Benchmark Survey Report November 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 5 star and 4 star segment.
Yousef Wahbah Partner and Head of MENA Transaction Real Estate, EY, UAE EY Middle East Hotel Benchmark Survey We hope you enjoy the November 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 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, 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 global EY network with more than 19, Page 3: November 214 key performance highlights. Page 4: We have highlighted the largest variance on a per month basis for the various markets over the last twelve month period in regards to occupancy, average room rate, and Rooms yield. Dubai overall occupancy, average room rate and Rooms yield over the past twelve 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 November 214
November 214 Key Performance Highlights Hospitality markets in Cairo, Beirut and Manama witness a positive increase in November 214 With the government s effort in recuperating tourism in Egypt and all the Egyptian ambassadors across the globe co-operating the region, Cairo s hospitality market continues to see growth month over month, with average occupancy increasing from 24.% in November 213 to 4.% in November 214. The increase in occupancy was coupled with a jump in ADR from resulting in a rise in RevPAR by 117.% in November 214 when compared to November 213 Beirut s hospitality market has continued its positive trend, with average occupancy increasing from 47.% in November 213 to in November 213 to US$16 in November 214 In November 214, Manama s hospitality market witnessed an in November 214. The increase in occupancy was attributed to the Jewelry Arabia event which took place in November which is the only international trade event dedicated to fashion jewelry, now established as the biggest and most prestigious jewelry exhibition in the Middle East Dubai s hospitality market sees a slight drop in RevPAR performance when compared to November 213 Despite the continuous strong supply growth with new hotels opening, occupancy slightly dropped by 1.4% in November 214 when compared to the same period last year. Hotels across Dubai have also recorded a slight drop in RevPAR from US$287 the drop in occupancy due to the increased inventory in the city Abu Dhabi s hospitality market witnesses an increase in RevPAR performance in November 214 Abu Dhabi s hospitality market witnessed an increase in RevPAR of 3.4% in November 214 when compared to November 213, this was mainly due to the increase in ADR from US$262 in November 213 to US$273 in November 214. This is ascribed to the increased tourists in the city due to the F1 racing and the international petroleum exhibition and conference that took place in November Kuwait and Jeddah s hospitality market performance dropped when compared to the same period last year In November 214, Kuwait s hospitality market witnessed a decrease in RevPAR of 33.4% as compared to November 213, this was mainly due to ADR dropping from US$341 in November average occupancy of 7.% in November 214 when compared to the same time last year Jeddah s hospitality performance decreases by 2.2% in RevPAR from US$236 in November 213 to US$248 in November 214, Benchmark 3
Markets with the largest variance on a per month basis % Occupancy for Riyadh Hotels 9 Occupancy % Occupancy % 7 6 5 4 51 65 59 75 78 73 72 39 51 69 53 3 2 1 Average Room Rate for Cairo City (US$) 12 Average room rate 19 112 Average room rate 1 6 4 7 82 77 83 78 89 94 98 95 2 Rev PAR in Manama(US$) 14 Room yield 12 1 93 97 115 14 112 97 94 92 96 17 113 Room yield 6 78 65 4 2 4 Benchmark November 214
Dubai overall monthly performance % Occupancy for Dubai Overall Hotels 1 Occupancy % Occupancy % 9 7 6 5 87 82 87 89 9 84 79 76 46 74 77 83 86 4 3 2 1 Average room rate for Dubai Overall hotels (US$) 4 Average room rate 35 3 329 35 337 313 319 327 32 39 Average room rate 25 2 15 244 186 174 195 21 1 5 Rev PAR in Dubai Overall hotels (US$) 35 Room yield 3 25 287 251 294 278 286 276 265 265 Room yield 2 15 194 141 144 155 1 81 5 Benchmark 5
Selected markets monthly performance (Local currency) EY Middle East Hotel Benchmark Survey Monthly performance: 11/214 Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 47. 1. 74 -.9% 43 2.9% Egypt Cairo City EGP 4. 24. 16. 46 34.9% 22 11 117.% Jordan Amman JOD 67. -9. 11 18 64 73-13.1% Kuwait Kuwait KWD 62. -7. 1-24.9% 41 62-33.4% Lebanon Beirut LBP 47. 4. 242,136-1.8% 117,678 6.4% Qatar Doha QAR 82. 7. 899 3 12.% 743 64 23.2% Saudi Arabia Jeddah SAR 72. 77. 929 884 671 686-2.2% Madina SAR 49. 1. 646 67 6.4% 3 Makkah SAR 38. 3. 8. 1,4 713 44 214 Riyadh SAR. 29. 7 822-1.8% 424 United Arab Emirates Abu Dhabi AED 86. 87. -1. 1,2 961 4.2% 87 841 3.4% Dubai Beach AED. 1,789 1,9-9.7% -3.1% Dubai City AED 86. 91. 784 674-11.% Dubai Overall AED 87.1-1.4 1,134 1,21-6.3% 972-7.7% 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 does 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 at + 971 4 332 4. 6 Benchmark November 214
Selected markets monthly performance (US dollar) EY Middle East Hotel Benchmark Survey Monthly performance: 11/214 Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 47. 1. 196 198 -.9% 113 93 2.9% Egypt Cairo City US$ 4. 24. 16. 7 34.9% 38 18 117.% Jordan Amman US$ 67. -9. 91 14-13.1% Kuwait Kuwait US$ 62. -7. 341-24.9% 142 213-33.4% Lebanon Beirut US$ 47. 4. 16 163-1.8% 83 78 6.4% Qatar Doha US$ 82. 7. 247 221 12.% 24 166 23.2% Saudi Arabia Jeddah US$ 72. 77. 248 236 179 183-2.2% Madina US$ 49. 1. 172 162 6.4% 87 Makkah US$ 38. 3. 8. 277 19 18 Riyadh US$. 29. 219-1.8% 174 113 United Arab Emirates Abu Dhabi US$ 86. 87. -1. 273 262 4.2% 237 229 3.4% Dubai Beach US$. 487-9.7% 418 431-3.1% Dubai City US$ 86. 91. 213 184 26-11.% Dubai Overall US$ 87.1-1.4 39 329-6.3% 287-7.7% 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 does 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 at + 971 4 332 4. Benchmark 7
Selected markets Year-to-Date performance (Local currency) EY Middle East Hotel Benchmark Survey Year over Year performance (January November) Currency: Local Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama BHD 48. 42. 6. 76 77-1.2% 37 33 13.4% Egypt Cairo City EGP 34. 9. 472 11.8% 1 122 47.2% Jordan Amman JOD 6. 62. -2. 114 11 3.6% 69 68 1.6% Kuwait Kuwait KWD 48. -11. 87 81 7.8% 43 48 Lebanon Beirut LBP -1. 126,164 132,61-4.9% Qatar Doha QAR 71. 63. 8. 843.9% 61 14.2% Saudi Arabia Jeddah SAR 76. 78. -2. 1,26 936 9.6% 787 731 7.6% Madina SAR 64. 11. 717 766-6.4% 497 Makkah SAR 6. 3. 828 1,1-18.% 498-14.1% Riyadh SAR 66. 9. 4 824-2.4% 477 12.7% United Arab Emirates Abu Dhabi AED 78. 77. 1. 722-3.% Dubai Beach AED 79. 77. 2. 1,449 -.4% 1.8% Dubai City AED 79. 82. -3. 749 747.4% -3.1% Dubai Overall AED 79.. -1. 1,1 999.2% 792 1-1.2% 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 does 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 at + 971 4 332 4. 8 Benchmark November 214
Selected markets Year-to-Date performance (US dollar) EY Middle East Hotel Benchmark Survey Year over Year performance (January November) Currency: US$ Occupancy Average room rate Rooms yield Currency 214% 213% Change in % points 214 213 Change 214 213 Change Bahrain Manama US$ 48. 42. 6. 23-1.2% 99 87 13.4% Egypt Cairo City US$ 34. 9. 92 82 11.8% 31 21 47.2% Jordan Amman US$ 6. 62. -2. 162 3.6% 98 97 1.6% Kuwait Kuwait US$ 48. -11. 299 277 7.8% 146 166 Lebanon Beirut US$ -1. 162 168 83 88-4.9% Qatar Doha US$ 71. 63. 8. 234 232.9% 168 147 14.2% Saudi Arabia Jeddah US$ 76. 78. -2. 274 9.6% 21 7.6% Madina US$ 64. 11. 191 24-6.4% 144 133 Makkah US$ 6. 3. 221 269-18.% 133-14.1% Riyadh US$ 66. 9. 214 22-2.4% 143 127 12.7% United Arab Emirates Abu Dhabi US$ 78. 77. 1. 197 26-3.% Dubai Beach US$ 79. 77. 2. 396 -.4% 312 36 1.8% Dubai City US$ 79. 82. -3. 24 23.4% 162 167-3.1% Dubai Overall US$ 79.. -1. 273 272.2% 216 218-1.2% 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 does 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 at + 971 4 332 4. Benchmark 9
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