Big RevPAR growth for Middle East hotels

HotelBenchmark Survey shows hoteliers in Muscat and Abu Dhabi are up 60% in Q1.
Big RevPAR growth for Middle East hotels
By Chris Jackson
Tue 29 May 2007 09:32 AM

Preliminary results from Deloitte's HotelBenchmark Survey show the hoteliers across the Middle East improved their RevPAR results by 14.9% for the first quarter, compared with the same time last year.

Occupancy rose by 3.2% to hit 71%, and average room rate was posted at US $158 across the region. Average RevPAR in absolute value was $112 across the region.

Looking at individual results from across the region, Muscat and Abu Dhabi were the standout performers with RevPAR growth of more than 60% - the cities posted 61.5% and 60.4% respectively.

Abu Dhabi's performance is particularly impressive given average room rates have risen from $97 to $244 in two years.

The only real ‘loser' was Beirut, where RevPAR dropped by 56.4% to $34 as the city continues to feel the effects of the conflict last summer.

Occupancy in Beirut is driving this situation, at just 28.9%.

Deloitte Middle East tourism hospitality and leisure partner Rob O'Hanlon said with high occupancies in cities like Dubai - it posted 89.4% occupancy this quarter - it was not surprising developers and operators were continuing to race to build hotels.

"However what is more interesting is that some less well known markets - such as Muscat - are showing signs of staggering growth and will continue to steal some of the limelight from Dubai as they continue to evolve," he said.

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