Most GCC hotels witness Ramadan revenue dive

Revenue per available room declines in all markets but Makkah, Madinah, says STR
Most GCC hotels witness Ramadan revenue dive
Grand Mosque in Saudi Arabias holy Muslim city of Makkah. (Mohammed al-Shaikh/AFP/Getty Images)
By Sarah Townsend
Wed 20 Jul 2016 04:40 PM

Hotel revenue rates declined in most major markets across the GCC during Ramadan compared to the previous year, new research reveals.

Research firm STR compared hotel performance over the Ramadan period from June 6 to July 5 with the previous year’s Ramadan from 18 June to 17 July for seven markets – Qatar, Muscat, Abu Dhabi, Dubai, Makkah, Madinah and Manama.

Muscat witnessed the steepest year-on-year drop in revenue per available room (RevPAR) – a decline of 24.8 percent, the data showed. The decrease was driven mostly by a 14 percent drop in average daily rate (ATR), STR said.

Makkah and Madinah in Saudi Arabia were the only major hotel markets in the region to experience year-on-year RevPAR increases during the period.

RevPAR increased 8.3 percent in Makkah, the data showed, driven by a 3.9 percent rise in occupancy and 4.3 percent increase in ADR.

In Madinah, RevPAR grew 2.6 percent, with occupancy up 1.5 percent and ADR up 1.1 percent.

Dubai and Abu Dhabi, meanwhile, experienced declining room rates during Ramadan. Dubai saw an 11.6 percent drop in both RevPAR and ADR but flat occupancy rates, while Abu Dhabi reported a 14.3 percent drop in RevPAR. It experienced a 7.7 percent decline in occupancy and 7.2 percent drop in ADR, STR said.

Manama saw RevPAR decline 18.9 percent, driven mainly by a 12.7 percent decrease in ADR, according to the data.

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