STR Global chief says Gulf states have shone despite the Middle East reporting a 'mixed picture' in first six months
Hotels in the UAE and Bahrain were among the best performers in the Middle East and Africa region during the first half of 2014, according to STR Global.
While the Middle East reported mixed results for H1, STR Global said the UAE, Bahrain and Jordan were the stand-out performers, with Bahrain reporting 18.3 percent growth in revenue per available room (RevPAR).
Commenting on the region's performance in H1, Elizabeth Winkle, managing director of STR Global, said: “While there has not been a lot of movement in occupancy, rate has increased by 5.4 percent when measured in a constant-currency basis in US dollars , resulting in RevPAR growth of 6.4 percent for the first six months of the year.
“We are seeing rate growth for all three sub-regions, including the Middle East (+2.4 percent), Northern Africa (+2.0 percent) and Southern Africa (+7.2 percent). It is nice to see some ADR growth across the region, albeit muted, in spite of instability and turbulence in many of the countries.
“The Middle East, which will be affected by Ramadan, has reported a mixed picture for the first six months of the year,” Winkle added.
“Jordan and the United Arab Emirates have been the standout countries so far this year. Coming from a low base, Jordan (+11.4 percent) and Bahrain (+18.3 percent) both recorded double-digit RevPAR increases for the first half of the year, in local and constant currency”.
For June, the Middle East/Africa region reported a one percent increase in occupancy to 64.6 percent, a 3.5 percent increase in average daily rate (ADR) to $169.22 and a 4.5 percent increase in RevPAR to $109.24.
Doha reported the largest rise in occupancy in June (+17.4 percent to 75.2 percent), STR Global said, adding that Jeddah and Manama posted the best ADR results (+12.0 percent to $282.62 and +11.9 percent to $212.73 respectively).
Riyadh posted the biggest drop in ADR - down 6.9 percent to $221.47, STR Global's data added.
Manama (+27.5 percent to $123.12) and Doha (+15.6 percent to $130.05) were among the best RevPAR performers in June.