Jeddah hotels reports declines in all key performance indicators in November amid rising supply in the market
Jeddah hotels reported declines in all key performance indicators in November amid rising supply in the market, according to analysts STR.
STR’s preliminary November data for Jeddah showed negative performance comparisons affected by continued supply growth.
Based on daily data from November, Jeddah hotels reported a 8.1 percent increase in supply against a 3.4 percent in demand.
Occupancy fell by 4.3 percent to 43.9 percent which STR said was partly affected by the return of King Salman's entourage and government officials heading back to Riyadh.
Average daily rate (ADR) in November fell by 10.1 percent to SR624.69 while revenue per available room (RevPAR) slumped by 14 percent to SR274.35
"Strong supply continues to affect performance levels in the market. Additionally, STR analysts note that the winter months are typically slower for Jeddah hotels as King Salman’s entourage and government officials head back to Riyadh," said STR.