Hotel occupancy rates in Jeddah are set to continue to slump in March as the city sees a significant increase in supply, according to analysts STR.
STR’s preliminary March 2018 data for hotels in the Saudi city indicated mostly negative performance due to the spike in supply.
Based on daily data from March, Jeddah reported a 12.9 percent jump in supply compared to the year-earlier period while demand rose only marginally by 0.9 percent.
Occupancy fell by 12.3 percent to 48.8 percent while average daily rate (ADR) dropped by 5.6 percent to SR674.54 and revenue per available room (RevPAR) plummeted by 17.2 percent to SR329.17.
STR analysts noted that occupancy levels have been declining significantly in Jeddah over the past two years due to supply growth.
With room rates dropping as well, RevPAR has now decreased in the first quarter of each of the past three years, they added.
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