Makkah hotels buck trend by posting Ramadan revenues rise

STR data shows Oman has seen the steepest RevPAR decline during first two weeks of holy month
Makkah hotels buck trend by posting Ramadan revenues rise
Grand Mosque in Saudi Arabias holy Muslim city of Makkah. (Mohammed al-Shaikh/AFP/Getty Images)
By Staff writer
Thu 07 Jul 2016 09:30 AM

The holy city of Makkah was the only hotel market in the Middle East to see an increase in revenues during the first half of Ramadan, according to analysis by STR.

It said in a statement that Makkah was alone in registering an increase in revenue per available room (RevPAR) during the first two weeks of the holiday.

STR compared preliminary daily data for six hotel markets in the Middle East from June 6-20 with the June 18-July 2 Ramadan time period last year.

The analysis showed that Makkah experienced a 1.3 percent increase in occupancy and an 8.5 percent increase in average daily rate (ADR), leading to a RevPAR increase of 9.9 percent. 

STR said Muscat, Oman, experienced the steepest RevPAR decline during the two-week period, falling 23.4 percent. The decrease was caused equally by an 11.4 percent decrease in occupancy and a 13.8 percent drop in ADR. 

Dubai hotels recorded a 2.9 percent increase in occupancy over the two-week period, but ADR was down 9 percent, resulting in a 6.4 percent decrease in RevPAR.

STR analysts noted that even with consistent supply growth, Dubai’s ADR remains among the highest for major global markets.

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