Average Middle East hotel rates highest in world in Q1

Hotels in the Middle East and Africa region reported mixed performance in March with daily room rates rising but occupancy declining.

According to new data compiled by STR Global, the region’s occupancy ended the month with a 12.9 percent decrease to 57.8 percent, while its average daily rate rose nine percent to $172.89.

Revenue per available room (revPAR) fell 5.1 percent to $99.98, STR Global added.

In first quarter of 2011, the region’s occupancy fell 7.8 percent to 56.8 percent, its ADR was up 9.4 percent to $176.31, and its RevPAR experienced a slight increase, rising 0.9 percent to $100.17.

“Hotel performance across Northern Africa and parts of the Middle East continue to be influenced by events in the region”, said Elizabeth Randall, managing director of STR Global.

“The most significant monthly revPAR declines (in local currency) of the countries we track were reported in Bahrain (down 79 percent) and Egypt (down 68 percent). Occupancy is the main driver of the declines, as both markets reported occupancies of only 25 percent."

However, despite the unrest, the Middle East/Africa region achieved the highest average room rate of the four world regions ($176), she added.

"The declining occupancy levels should be a temporary feature, and we expect to see improvement as soon as the political situation in each country stabilises," she said.

Abu Dhabi experienced the only double-digit occupancy increase in the region, rising 13 percent to 71.2 percent but the emirate also posted the largest ADR decrease, falling 21.3 percent to $176.72.

Saudi Arabia was the only Middle East country to register revPAR increases of more than five percent, up 5.2 percent to $137.02).